Report No. 953a-RO

RomaniaAgricultural Sector Survey FIE C°pYOctober 29, 1976

Projects DepartmentEurope, Middle East and North Africa Regional Office

FOR OFFICIAL USE ONLY

Document of the World Bank

This document has a restricted distribution and may be used by recipientsonly in the performance of their official duties. Its contents may nototherwise be disclosed without World Bank authorization.

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BASIC DATA

CURRENCY EQUIVALENTS

Official Rate Official Rate with Premium

lei 4.97 = US$1.00 lei 12 = US$1.00lei 1 = US$0.20 lei 1 - US$0.08

tonversion Rate for Foreign Weights and MeasuresTrade Transactions

Metric Systemlei 20 = US$1.00lei 1 = US$0.05 Population

Area 21.4 million (end of 1975)Total-287500k2 Rate of growth 1.0% p.a. (1960-75)

Total - 287,500 km Rural, share of total (1975): 56.8%Agricultural - 149,464 km2 Arable - 97,409 km2 Population Characteristics (1975)

Density (1975) Crude birth rate (per 1,000): 19.7

2 Crude death rate (per 1,000): 9.389.5 per km Infant mortality (Der 1,000'218 per km2 of arable land live births): 34.7

Hlealth (1975) Nutrition (1971)

Population per physician: 624 Calorie intake as % of requirements: 112Population per medical bed: 108 Protein intake (gram/day): 91

Education (1975) Access to Electricity (1975 Estimate)

Adult literacy rate, %: 100 % of dwellings - urban: 99.8Primary school enrollment, %: 100 - rural: 78.to 83

Employment (1975) Net National Income

Total labor force: 10.2 million Annual Growth Rates (Constant Prices)% in agriculture: 38% in industry and 1971-75 - 11.3%'construction: 39 1966-70 - 7.7%% in other: 23 1961-65 - 9.0%

Fiscal Year Gross National Product Per Capita

Jgmuary 1 - December 31 US$1,080 /

l/ According to Bank methodology.

FOR OFFICIAL USE ONLYABBREVIATIONS

MA Ministry of Agriculture and Food IndustryBAFI Bank for Agriculture and Food IndustryNUAPC National Union of Agricultural Production CooperativesSPC State Planning CommitteeUASs State Agricultural UnitsIASs State Agricultural EnterprisesCAPs Agricultural Producer CooperativesICAs Inter-Cooperative AssociationsAMEs Agricultural Mechanization EnterprisesSAMs Stations for Agricultural MechanizationStatisticalYearbook Statistical Yearbook of the Socialist Republic of Romania

GLOSSARY

Juaets Districts (39) into which the country is divided foradministrative purposes. Bucharest is a separateadministrative area with some agricultural land.

Centrals and Administrative units of the Ministry of Agriculture andTrusts Food Industry which have responsibility for coordinating,

managing and supervising the operations of socialistenterprises for farm production, marketing, inputsupply, industrialization, land reclamation andagricultural construction and the like.

This report is based on the findings of a mission which visitedRomania from May 11 to June 6, 1975, and comprised: Messrs. R. Christensen(Mission Leader), K.H. Imam (General Economist), D. Ware (AgriculturalEconomist, Consultant), M. Miller (Agriculturist, Consultant),N. Worker (Livestock Specialist), and E. Greenshields (Projects,Consultant).

Messrs. M. Altaf Hussain and R. Christensen returned to Romaniaduring May 26 - June 4, 1976 and Mr. Altaf Hussain revisited in July1976, to update and review the draft report with Romanian authorities.This report updates part of 1974 and all of 1975 data (tentative), incor-porates additional information on prices, taxes, 1976 targets, greenhoilsesdevelopment and technical coefficients, and external trade. Italso reflects the final version of the 1976-80 Plan as approved on July 3, 1976.

This document has a rstricted distribution and may be used by recipients only in the performa&e|of their official dutie. Its contents may not otherwise be disclosd without World Dank authoqlatlon.

ROMANIA

AGRICULTURAL SECTOR SURVEY

TABLE OF CONTENTS

Page No.

SUMMARY AND CONCLUSIONS ................................ i-v

I. INTRODUCTION ........................................... 1

II. THE AGRICULTURAL SETTING ............................... 2

A. Agriculture's Role in the Economy .... ............. 2B. Natural Resources and Their Use ................... 6C. Structural Organization of Farming .... ............ 9D. Administrative Organization ....................... 13E. Planning and Investment Procedures .... ............ 26

III. PERFORMANCE DURING THE LAST TWO DECADES .... ............ 31

A. Structural Transformation of Agriculture. 31B. Output and Productivity Changes.32C. Sources of Growth in Output and Productivity ...... 43D. Foreign Trade ..................................... 50

IV. DEVELOPMENT PLANS, PROSPECTS AND POLICIES .... .......... 54

A. Plan Objectives ................................... 54B. Potentials and Prospects .......................... 61C. Review of Selected Issues ......................... 65

V. INVESTMENT PROJECTS ...... ............ .................. 69

A. Government Project Proposals ...................... 69B. Other Project Possibilities ....................... 70C. Tentative Project Recommendations .... ............. 72

APPENDIX TABLES .............................................

TABLE OF CONTENTS (Continued)

ORGANIZATION CHARTS

*9985 Ministry of Agriculture and Food Industry9986 Ministry of Agriculture and Food Industry Organization at Judet Level9987 State Agricultural Enterprise9988 Agricultural Production Cooperatives9989 Flow of Agricultural Products to Markets

MAP S

11718 Topography and Soils11719 Rainfall and Agricultural Production Zones11759 Wind Regimes and Average Temperatures11815 Vegetative Zones and Agricultural Land Distribution11720 Land Area and Use by Districts: Arable Land and Pasture and Meadow11721 Area under Major Crops by Districts: Wheat and Rye and Maize11717 Subordinate Institutes, Central Stations and Research Stations of

the Academy of Agriculture and Forestry Science11758 Irrigation Project Areas Proposed for IBRD Consideration

ROMANIA

AGRICULTURAL SECTOR SURVEY

SUMMARY AND CONCLUSIONS

i. The purpose of this report is to (a) gain understanding of institu-tional frame work in the agricultural sector, (b) analyze performance of theagricultural sector in Romania during the last two decades and potentials forfuture growth, (c) describe the factors which contributed to rapid develop-ment of agriculture, and (d) review agricultural project proposals for IBRDfinancing. It is the first detailed review of the role of agriculture innational economic growth made by the World Bank.

Development Record

ii. Agriculture is a basic sector. It has contributed greatly toRomania's economic growth during the last two decades. Romania has an out-standing record of improving output and productivity of its agriculturalsector. Social product from agriculture (gross agricultural production) al-most doubled during the last two decades. Number of farm workers declinedfrom 6.2 million in 1950 to 3.8 million in 1975 (almost 40%). Gross outputper farm worker almost tripled. Growth of agricultural production resultedfrom rising crop yields and production per animal unit achieved by adoptingimproved technology including improved varieties of crops and breeds of live-stock, use of fertilizer and other material inputs, and large investments infarm mechanization and land reclamation. Irrigated area increased from only43,000 ha in 1950 to 1.5 million ha in 1975 (15% of the arable area). Mecha-nization of field work improved from more than 200 ha of arable area pertractor in 1960 to about 80 ha in 1975; a major factor causing average pro-ductivity of farm workers to rise. In the livestock sub-sector, new tech-nology was introduced for breeding, fattening, and producing livestock andpoultry products in large factory-type complexes.

iii. Romania has placed priority on industrial growth in its developmentstrategy. Agriculture still is an important branch of the economy althoughits relative importance has declined compared with other sectors as in othercountries where rapid economic growth has occurred. Agriculture's share ofsocial product declined from 30% in 1955 to 13% in 1975 and agriculture'sshare of total labor force from about 70% to 38%. Despite the gains in laborproductivity, gross and net output per worker is still lower in agriculturethan in other sectors.

iv. Agriculture has contributed to national economic growth by supply-ing workers and capital for expanding other sectors. It has been an import-ant source of foreign exchange earnings, accounting for 27% of total commod-ity exports in 1974, much of it convertible currencies. Gross agriculturalproduction increased by nearly 3.0% annually during the last two decades com-pared with a population growth rate of about 1%. Especially important is thefact that Romania's growth rate in social product from agriculture has acce-lerated from about 2.0% during 1955-65 to 4.2% during 1965-75. Per capitaconsumption of food products and the total volume of agricultural exports haveincreased. Incomes of rural people have been improved greatly due to the

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measures taken during the 1971-75 plan period but incomes of farm workersstill average 10% lower than those in all industrial activities and 20% lowerthan those in construction.

v. Because of highly variable rainfall which cause droughts in someyears and flood in others, crop production has fluctuated widely from oneyear to the next. Total crop production reached a record high in 1972 whenweather conditions were unusually good but it declined slightly in the fol-lowing years due to less favorable climatic conditions. Despite flooddamages in June 1975 favorable weather later in the year caused total cropproduction to increase almost 0.5% in 1975 over 1974. Total agriculturalproduction including livestock production increased 3% from 1974 to 1975.National income from agriculture should rise in the next few years due toadditional investments to expand the production base and greater applicationof improved technology.

Institutional Organization

vi. Farming operations are carried out by State Agricultural Units(State Agricultural Enterprises and other State Units), Agricultural ProducerCooperatives, Inter-Cooperative Associations, and private farms. In 1975,State Agricultural Units accounted for 21% of the arable land, AgriculturalProducer Cooperatives for 74% and private farms for 5%. State AgriculturalEnterprises averaged 5,300 ha of agricultural land. They have their ownmechanization units. Agricultural Producer Cooperatives average slightly over2,000 ha in size. Land is owned collectively by members who also farm smallindividual plots made available to them by cooperatives. Stations for agri-cultural mechanization operated by Agricultural Mechanization Trusts con-tract with Agricultural Producer Cooperatives to perform field work and othermechanized operations and also do some work for individual farmers. Individ-ual privately owned farms are located mainly in mountainous areas not wellsuited for large-scale mechanized farming. The recently established Inter-Cooperative Associations are large-scale factory-type units formed by twoor more Agricultural Producer Cooperatives for producing livestock, vegetablesand other agricultural products and for supplying services to farm units.They have little land and rely upon feed and other materials purchased fromAgricultural Producer Cooperatives and State Enterprises. A recent lawpermits State Enterprises and Agricultural Producer Cooperatives to jointlyestablish mixed State-Cooperative Associations. State Enterprises organizedunder Centrals of the Ministry of Agriculture have responsibility for market-ing farm products and supplying farm inputs. The Bank for Agriculture andFood Industry provides operating and investment credit to farm production,marketing, food processing, and other units operating in the field of agri-culture.

Vii. Five-Year and Annual Plans establish targets for agricultural pro-duction, resource use, investments and financing which are implemented bythe Ministry of Agriculture and Food Industry and by the Bank for Agricultureand Food Industry. State Agricultural Enterprises deliver all their productsto State Marketing Enterprises while Agricultural Producer Cooperatives enter

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into contracts to deliver farm products to the State Marketing Enterprises atspecified prices. Stations for Agricultural Mechanization are paid for theirservices in money and in kind and they are an important source of farm productsdelivered to the State. Workers on State Agricultural Enterprises are stateemployees and are paid cash salaries. The members of Agricultural ProducerCooperatives receive remuneration for their labor from a consumption fund, theamount remaining after payment for costs of services and receive a substantialshare of their remuneration for farm work in kind which they utilize mainlyfor livestock production on household plots. Individual farmers and membersof cooperatives who cultivate small individual plots sell products at peasantmarkets, but they also may enter into contracts to deliver farm products toState MIarketing Enterprises. They account for a large share of livestock pro-duction: 46% of all meat produced in 1975, 57% of the milk, 43% of the wcoland 62% of the eggs. Prices paid for farm products delivered to the Stateare fixed by law but those at peasant markets are permitted to vary withincertain limits.

viii. Priority has been placed on building up the productivity of StateAgricultural Enterprises during the last decade. They have been more adequa-tely supplied with fertilizer and other inputs, with technicians to manage andsupervise farming operations, and also with investment funds for mechanization,buildings, livestock and land improvements than Agricultural Producer Coopera-tives. State Agricultural Enterprises also have larger shares of land underirrigation and located in the more productive plains region than have Agricul-tural Producer Cooperatives. Consequently, productivity of land and laboraverages higher for State Agricultural Enterprises than for Agricultural Pro-ducer Cooperatives. Labor productivity and feed-livestock conversion ratiosaverage high on the newly established large-scale Inter-Cooperative Associa-tions. They are highly capital-intensive with modern facilities.

ix. The present structural organization of agriculture evolved slowlybeginning in 1949 when the collectivization program began. Agriculture suf-fered severely from wartime damages during 1941-45 and it was not until 1955that agricultural output per capita of total population reached the 1938level. In 1945 a land reform program was put into effect under which about10% of the arable land which previously had been held in large ownership unitswas redistributed to small farmers. It is reported that before 1945 arableland not in large estates was divided into about 20 million small tracts(averaging about one-half ha in size) with each farm family operating manytiny fragmented fields. Romanian authorities pointed out that difficultieswere encountered in establishing large-scale cooperative farms under landreform programs during the first few years after 1949 due to lack of materialresources (buildings, tractors, farm machinery, equipment, etc.) and to lackof organizational and managerial experience required for successful operationof large efficient farms. The Government encouraged peasants to organizeAgricultural Associations in which individual farmers retained land ownershipbut land was pooled within Associations and remuneration was according tolabor input. By 1959 these Associations accounted for some 30% of the arableland. Meanwhile, the Government encouraged individual farmers to establish

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cooperative farms as material shortages were overcome and additional organi-zational experience was gained. The establishment of cooperative farms wasespecially rapid during the 1958-62 period. By 1965 the share of all arableland operated by Agricultural Producer Cooperatives increased to 78% andthat by Agricultural Associations declined to almost nil (.1%). There hasbeen little change in the structural organization of agriculture since 1962except for the establishing of increasing number of large-scale Inter-Cooperative Associations since 1973 and vegetable greenhouses (present area1,500 ha) since 1970 by different enterprises, mainly IASs.

Plans and Prospects

x. Romania's Sixth Five-Year Plan for 1976-80 was approved in July1976 by the General Assembly. It provides for gross agricultural productionto increase by 28-44% in 1976-80 over 1971-75 compared with actual increasesof about 25% in the two previous Five-Year Plan periods. Investment inagriculture is projected to rise about 50%, but agriculture's share of totalinvestment is projected to decline from 14% of the total in 1971-75 to 11.6%in 1976-80. It is planned to greatly increase investments for farm mechaniza-tion, land reclamation and food industries. Investments in AgriculturalProducer Cooperatives will be much larger in 1976-80 than in 1971-75 whilethose in the State Agricultural Units would be less. This policy shifttowards CAPs, which account for three fourths of the agricultural land, is astep in the right direction for achieving larger production. An additional1.2 million hectares will be brought under irrigation. Farm labor force isexpected to decline from 38% of the total in 1975 to 27-28% in 1980 as 700,000of the one million new jobs to be created in other sectors will be filled byworkers leaving agriculture. Government is training the young laborer to makethis transition smooth. Gross production per farm worker would rise about 80%from 1973 to 1980 if planned changes in farm labor force and agriculturalproduction are achieved.

xi. Prospects are good for achieving an increase of 28% in gross agri-cultural production in 1976-80 over 1971-75 assuming average weather condi-tions. A larger increase could be achieved if as stipulated in the plan anadditional 1.2 million hectares are brought under irrigation, physical inputstargets are met and improved farming practices adopted. Crop yields still arelow compared with those in other East European countries and those achievedby research stations in Romania. Fertilizer consumption (active substance)averaged only 95 kg per ha of arable area in 1975 but it is projected to riseto 280 kg per ha by 1980. There also is large potential for expanding live-stock production by greater use of better livestock breeds and balancedf'eeding rations which improve feed-livestock conversion ratios. The proj-ected increase in agricultural production is destined partly for export andnmainly for local consumption.

xii. In addition to almost 10 million ha of arable land, Romania has about4.5 million ha of pasture and meadow land, much of which could be improved andutilized more intensively to expand livestock production. Increased productionof roughage feeds from natural pastures would reduce the pressure on scarcegrain and protein feed supplies. Also, the introduction of more perennials(clover, lucerne, etc.) in crop rotations on arable land could increase total

feed production and improve yields of cultivated crops following perennials.Feed supplies will be crucial to achieving the targets set for livestockproduction, especially in years with unfavorable climatic conditions.

xiii. Planned increases in land reclamation for irrigation, flood con-trol and drainage are required not only to raise crop yields to higher levelsbut also to reduce fluctuations in crop production from one year to the nextand to make effective use of fertilizer and other inputs. Greater stabilityin crop production would reduce the need to maintain large reserve stocksand diminish effects on Romania's balance of payments. Land reclamation pro-grams will help stabilize crop productior, at higher levels and reduce costsof maintaining reserve stocks and Romania's risks to changes in world marketconditions.

Investment Projects

xiv. The June 1975 mission was given for possible Bank financing a listof projects for review. This list was refined and slightly modified byRomanian authorities by June 1976 and given to the review mission. Basically,the sub-sectoral distribution of projects is unchanged; size, components andsites have altered. It still emphasises irrigation and land reclamationprojects - similar to those currently being financed by the Bank. It includesin addition, new fields for investment such as greenhouses, pig and poultrydevelopment. Bank participation in the new fields, besides continuing withirrigation and land reclamation projects, should be possible.

ROMANIA

AGRICULTURAL SECTOR SURVEY

I. INTRODUCTION

1.01 This report presents the findings of a sector mission which visitedRomania during May 11 - June 6, 1975 to obtain a comprehensive understandingof the agricultural sector and its links with the rest of the economy and toprovide a framework for future Bank lending in agriculture. It includes ad-ditional information and revisions made during follow-up discussions withRomanian authorities during May 26-June 4, 1976. The 1975 mission had the fol-lowing specific objectives:

(a) Gain an understanding of how institutional arrangements affectagricultural production and marketing, including the organiza-tion, operations, and functions of the Ministry of Agricultureand Food Industry, the Bank for Agriculture and Food Industry;and other Ministries concerned with agricultural development.

(b) Review the performance of the agricultural sector during thelast two decades, identify constraints to improving outputand productivity levels, and assess production and marketprospects to decide what kinds of investments will helpmaximize agricultural output growth in the future.

(c) Examine policy issues and questions relating to the per-formance of the agricultural sector, paying particular at-tention to policies affecting adoption of improved technology,resource allocation, investments, and foreign trade.

(d) Review with the Government its project proposals for Bankfinancing within a framework of appropriate developmentpriorities.

1.02 Prior to the 1975 mission's arrival in Bucharest, the Bank suppliedRomanian authorities with a statement, "Preparation Note on the AgriculturalSector Survey", with an attached list of data and other information requiredby the sector mission. Mission members requested additional data requiredto carry out its terms of reference while in Romania. Romanian authoritiessatisfied all requests except some of them depending on the internal legisla-tion of the state. Consequently, a draft report was prepared based on pub-lished statistics and reports, information obtained orally in numerous in-formative meetings with Romanian officials, observations made during fieldtrips, and some information supplied in response to written requests. Thisreport updates statistics contained in the 1975 draft report and incorporatessubtantial additional information and revisions resulting from the follow-updiscussions held in Bucharest in May-June, and again in July 1976.

1.03 Romania publishes much data in its Annual Statistical Yearbook whichprovides a basis for analysis of the agricultural sector. But published sta-tistical series are not available from the Statistical Yearbook or othersources for such items as the following: (a) prices and values of agricul-tural products and inputs; (b) per capita food supplies and related data,(c) investments in the agricultural sector by kinds of items which must beobtained from unpublished sources: similarly (d) a large part of data are ini:ndices or percentages. Data relating to the Five-Year Plan for Economic andSocial Development for 1976-80 have not yet been all published but the Planwas approved in July 1976. Romania expects to carry out a detailed censusduring the next year which will provide much new information about the agri-cultural sector.

II. THE AGRICULTURAL SETTING

A. Agriculture's Role in the Economy

2.01 Agriculture is a basic branch of Romania's economy and plays a majorrole in the nation's economic growth. Its absolute production has increasedgreatly in the last two decades but its relative contribution to national in-come has declined with rapid industrial growth in recent years. In 1975 agri-culture accounted for 38% of the total labor force, 13% of social product, 11%of fixed assets and 27% (1974) of total exports. In 1950, however, agricultureaccounted for 74% of total labor force, 28% of national income and 55% oftotal exports.

Table 2.1: AGRICULTURE's SHARE OF THE ECONOMY

Shares of Country Totals (%)1938 1950 1955 1960 1965 1970 1973 1974 1975

Rural population /1 79 77 69 68 66 59 58 57 57Labor force /1 - 74 70 65 57 49 42 40 38National income /2 38 28 37 33 29 19 19 16 15Social Product /2 30 26 30 25 22 17 16 14 13Fixed Assets - 19 17 15 14 12 12 12 11Exports - 55 43 36 35 27 29 27 -

/1 Shares shown for 1938, 1950, and 1955 based on shares reported for 1930,1948, and 1956, respectively and to 1975.

/2 Data for 1970, 1973 and 1974 according to methodology in force in 1974.

Source: Statistical Yearbook of the Socialist Republic of Romania, 1975.

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2.02 Romania has placed high priority on industrial growth in its devel-opment strategy. Prices of agricultural products have been kept at low levelsrelative to those for industrial products. Income levels of workers in agri-culture have averaged lower than those in other sectors, creating economicincentives for rural people to take non-farm jobs. A large share of Romania'snational income, varying between one third and one fourth, has been used for

capital formation and large capital investments have helped Romania achievenational income growth rates of 9-10% annually since 1965.

2.03 Agriculture has contributed to Romania's economic growth in severalimportant ways. It has been a source of labor for growth of other sectors anda source of capital and foreign exchange earnings to help finance industrialdevelopment. In addition, it has been a source of food for a growing popula-tion and raw materials for industry.

2.04 Total rural population has declined only slightly since 1950, buturban population has more than doubled (Table 2.2). Labor force in agricul-ture declined from 6.2 million in 1950 to 3.8 million in 1975, while laborforce in non-agricultural sectors increased from 2.2 million to 6.4 million.More than half of the growth of over 4 million workers in non-agriculturalsectors since 1950 consists of rural people who have moved from rural to urbanareas, or who have taken non-farm jobs but continue to live in rural villages.Approximately one-third of the workers in non-agricultural sectors (about2.0 million in 1974) live in rural areas. Total population has increased byabout 1% annually since 1950, but total labor force has grown only about 0.8%annually. However, population growth has averaged 1% annually in the last fewyears so total labor force will increase close to 1.0% annually towards theend of the decade.

Table 2.2: SELECTED INDICATORS OF CHANGE FOR AGRICULTURE AND THE TOTAL ECONOMY

Agriculture 1950 1955 1960 1965 1970 1974 1975

Rural population (mil) 12.2 12.0 12.5 12.6 12.0 12.0 12.1Labor force (mil) 6.2 6.5 6.2 5.5 4.8 4.0 3.8IndexSocial product 100 163 171 198 218 293 304National income 100 170 169 169 164 213 213Fixed assets 100 110 127 159 213 302 334

Total Economy

Population (mil) 15.9 17.5 18.4 19.0 20.3 21.0 21.2Labor force (mil) 8.4 9.4 9.5 9.7 9.9 10.1 10.2IndexSocial product 100 186 263 414 629 947 1,000National income 100 192 268 413 599 931 1,000Fixed assets 100 125 161 223 337 478 534Real income per

person 100 137 161 214 263 346 364

Source: Statistical Yearbook, 1975.

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2.05 Agriculture suffered severely from wartime damage and destructionduring the 1940's. Agricultural production was reduced and in 1950 totalagricultural output as measured by social product from agriculture was 27%below the level achieved in 1938. 1/ But social product from agriculture(gross agricultural production) tripled from 1950 to 1975. However, socialproduction of all sectors increased much more rapidly, about 10 times. Never-theless, agricultural production increased more rapidly than population, makingpossible higher levels of food consumption per person and larger agriculturalexports.

2.06 Expansion of agricultural output with reduced labor was made pos-sible by large capital inputs and improved technology. Fixed assets in agri-culture tripled during 1950-75, slightly more rapidly than total social productfrom agriculture. Social product per worker in agriculture was 5 times higherin 1975 than in 1950 and national income per agricultural worker was 3.5times. Material expenditures were increased greatly as many farming opera-tions were mechanized and more fertilizer and other inputs were used.

2.07 Capital investments increased more rapidly for other sectors thanfor agriculture, having in view the aim of industrial development of the coun-try. Fixed assets of the total economy were 5.3 times higher in 1975 thanin 1950 compared with about three times of agriculture. Rapid growth ofcapital investments in other sectors has been effective in increasing outputper worker. Social product and national income per worker in all sectorsaveraged 8.5 times higher in 1975 than in 1950. However, a small part ofthese gains may reflect relatively higher prices for industrial products.

2.08 Gains in labor productivity caused real incomes to increase greatlyand at the same time made possible increased capital formation. It is esti-mrated that income per person of the total population averaged 3.6 timeshigher in 1975 than in 1950. Incomes of rural people also have increasedsubstantially as a result of the measures taken by the state during 1971-75Plan period. But earnings of farm workers still average approximately 10%:Lower than those in all industries and 20% lower than those in the construc-tion industry.

2.09 Agriculture has become less labor intensive and much more capitalintensive during the last 25 years. But fixed assets per unit of social pro-duct still average much lower and labor input per unit of social product aver-age much higher in agriculture than in other sectors. Additional gains in

L/ Social product measures the gross value of production. National incomefrom agriculture is gross agricultural production less material expendi-tures which include depreciation, intermediate products, fertilizer andother inputs from non-agricultural sectors. National income from agri-culture is the net product of agricultural workers and land. Social pro-duct and national income from agriculture have been measured in constant1950 prices for 1950-59, 1955 prices for 1960-65 and 1963 prices there-after. Unlike gross national product as defined by the United Nations,social product excludes services and includes only material products.

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labor and land productivity in agriculture will require large additionalcapital investments for land and water resource development, further substitu-tion of capital for labor under farm mechanization programs, and increasedamounts of agricultural inputs. Agricultural production now is carried outby four types of units: (a) specialized, large-scale, integrated factory-typecomplexes for poultry and fattening cattle and producing swine, eggs and green-houses for growing vegetables - they require large capital investments but havevery high average labor-productivity levels; (b) State Agricultural Enterprises;(c) Agricultural Producer Cooperatives which usually produce several differentproducts and are more labor-intensive and less capital-intensive than thelarge factory-type complexes; and (d) small individual farms including privateplots operated by members of CAPs which are highly labor-intensive but utilizeonly limited amounts of capital goods.

2.10 Agriculture's role as a net earner of foreign exchange has beenespecially important in contributing to Romania's economic growth. Althoughexports of agricultural products have not increased as much as those of otherproducts, Romania has had a growing favorable balance of trade for agricul-tural products (Table 2.3). A large part of net foreign exchange earningsfrom agriculture has been in convertible currency. Much of it has been usedto finance imports required for industrial growth.

Table 2.3: TRADE BALANCES - AGRICULTURE AND OTHER PRODUCTS(million lei)

1950 1960 1965 1970 1973 1974ExportsAgriculture 697 1,543 2,338 2,994 5,293 6,504Other 577 2,759 4,271 8,111 13,283 17,722Total 1,274 4,302 6,609 11,105 18,576 24,226

ImportsAgriculture 285 649 832 1,808 3,051 4,725Other 1,175 3,238 5,631 9,953 14,367 20,838Total 1,460 3,887 6,463 11,761 17,418 25,563

Trade BalancesAgriculture 412 894 1,506 1,186 2,242 1,779Other - 598 - 479 -1,360 -1,842 -1,084 -3,116Total - 186 415 146 - 656 1,158 -1,337

1/ External Trade of the Socialist Republic of Romania, 1974 and previousvolumes and Statistical Yearbook of Socialist Republic of Romania, 1975.

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B. Natural Resources and Their Use

2.11 Romania is relatively well endowed with land resources. It has 23.7million hectares, slightly more than one hectare per person. Approximately 41%are arable, 19% pasture and meadows, 3% vineyards and orchards, 27% forest, and10% waste and other land (Table 2.4).

Table 2.4: LAND USE AND IRRIGATED AREA(O000 ha)

Land Use 1938 1950 1970 1973 1974 1975

Arable 10,093 9,378 9,733 9,658 9,703 9,741Pasture 2,703 2,853 3,002 3,047 3,037 3,033Meadows 1,714 1,682 1,416 1,431 1,423 1,413Vineyards 249 227 347 335 332 329Orchards 247 184 432 433 434 430

Subtotal 15,006 14,324 14,930 14,904 14,929 14,946

Forest 6,476 6,446 6,315 6,309 6,313 6,316Other 2,268 2,980 2,505 2,537 2,508 2,488

Total 23,750 23,750 23,750 23,750 23,750 23,750

Irrigated Area 1/ 15 43 731 1,255 1,396 1,474

1/ Area at end of year.

Source: Statistical Yearbook, 1975.

2.12 Cereals for grain accounted for 63% of total area of crops grown in1971-75 (Table 2.5). Wheat and maize are the major grain crops. Oilseedcrops (sunflower, soybeans, and flax) account for almost 7% of the crop areaand fodder crops for 16%. About half of the fodder crop area is in perennialsand about half in annuals for green feed, silage and hay. Sugar beets, tobac-co, potatoes, dry beans and peas are other important annual crops. Altogether,annual crops account for 92% of the total crop area and perennial crops foronly 8%, so most of the arable area is plowed annually.

2.13 Romania has a large livestock industry. Livestock products accountedfor 43% of the gross value of agricultural production in 1975 and crops for 57%.At the beginning of 1976 Romania had 6.1 million cattle, 8.8 million hogs, 13.9million sheep, and 79 million poultry for a total population of 21.4 million.In addition to 4.5 million ha of pasture and meadow, much of the 10 million haof arable land is used to grow feed for livestock. In addition to fodder crops,

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most of the maize harvested for grain is used for livestock feed. Otherimportant crops such as wheat, barley, soy beans, sunflower, and sugar beetsprovide by-products used for feeding livestock.

2.14 Romania can be divided into three almost equally-sized agriculturalzones based on climate, topography, soils and other natural conditions affect-ing land use potentials. (These features are shown on Maps 11718, 11719,11759, and 11815). Zone I, the plains region, includes judets covering 35% ofthe total land area, has relatively level and fertile soils and is located insouthern and western parts of the country. Zone II, the foothills and hillyareas, includes judets covering 33% of the land area, has shallow and lessproductive soils and is located mainly north of the plains region. Zone III,the mountainous and tablelands region, includes judets in the north andcentral parts of the country and covers 32% of the land area. The judetsincluded in each zone are shown on Maps 11720 and 11721.

2.15 Although yearly average rainfall is high enough for most temperatezone crops, it fluctuates widely from one year to the next, causing highlyvariable crops yields and frequent crop failures, especially in the southernand eastern plains. Rainfall averages 350 to 400 mm annually along the BlackSea coast, 500 to 600 mm moving west along the Danube, and 500 to 700 mm inthe western plains of Zone I. It averages 500 to 600 mm in the eastern foot-hills of Zone II and 600 to 800 mm in the western foothills. Zone III, thenorth-central mountainous and tablelands region, generally receives amplerainfall, 800 to 1,400 mm annually. Romania has increased its irrigated areafrom 43,000 ha in 1950 to 1.5 million ha in 1975, mainly in the southeasternplains where rainfall is inadequate or erratic to help stabilize and raisecrop yields to higher levels.

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Table 2.5: AREA, YIELD AND PRODUCTION OF MAJOR CROPS,1971-75 AVERAGES

Area Com-Crop Area Yield Production position

('000 ha) (kg/ha) ('000 ton) (%)

Wheat and Rye 2,464 2,212 5,450 25.7Maize 3,110 2,681 8,349 32.4Barley 363 2,326 845 3.8Oats 102 1,024 104 1.1Rice 25 2,307 57 0.2

Peas 59 1,196 71 0.6Beans 76 1,158 88 0.8Soybeans 160 1,386 221 1.7Sunflower 527 1,445 761 5.5

Sugar beets 215 22,144 4,758 2.2Tobacco 47 788 37 .5Potatoes 291 11,409 3,387 3.0Vegetables 227 11,251 2,675 2.4Fodder crops 1,560 - - 16.2Other 372 196 -3.9

Total 9,598 100.0

Source: Statistical Yearbook, 1975.

2.16 Approximately 2.5 million ha in the flood plains of the numerousrivers are subject to flood damage to crops as was the case in 1975. Floodprotection works are being constructed for 2.1 million ha located in theDanube delta, the Danube floodlands, and the Banat basin. Lack of adequatedrainage systems also limits crop production on much of this land.

2.17 Wind and water erosion of soils are serious problems in much of thecountry. It is estimated that 5.3 million ha of agricultural land requireserosion control measures. The most highly eroded areas are located in theeastern judets of Zone II, but there also is much soil erosion in mountainousareas of Zone III.

2.18 Natural resource conditions influence the regional distribution ofcrop, pasture and livestock production. The plains region (Zone I), forexample, has over half of the arable land (Table 2.6). On the other hand,the mountains and tablelands region (Zone III) has over half the pasture andmeadowland. Cattle and sheep are almost equally discributed among regions

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but 60% of the pigs are raised in plains region. Crop yields generally aver-age highest in Zone I, but potato yields average highest in Zone III.

Table 2.6: LAND USE AND LIVESTOCK NUMBERS BY ZONE, 1973

Zone IIIZone I, Zone II, Mountains &

Land Use (a) Plains Foothills Tablelands Total('000 ha)

Arable 5,084 2,692 1,882 9,658Pasture 686 1,054 1,307 3,047Meadows 132 366 932 1,431Vineyards 140 165 33 335Orchards 96 217 120 433

Subtotal 6,138 4,494 4,274 14,904Forest 1,072 2,546 2,690 6,309Other 1,188 711 637 2,537

Total 8,398 7,751 7,601 23,750

Livestock ('000)

Cattle 2,008 1,837 2,050 5,896Sheep 5,693 4,576 4,033 14,302Pigs 5,304 1,846 1,837 8,987

Source: Compiled from Statistical Yearbook of the Socialist Republic ofRomania, 1974.

C. Structural Organization of Farming

2.19 Farming operations are carried out by four types of production units:

(a) State Agricultural Units (UASs) which include State Agricul-tural Enterprises (IASs, Interprinderi Agricole de Stat) andother state units such as research stations, seed farms, green-house enterprises and others responsible for leasing pastureand meadow land to private farmers and cooperatives.

(b) Agricultural Producer Cooperatives (CAPs, Cooperative Agricolede Productie) and smallholdings operated by cooperative farmmembers interwoven in many ways into the operations of the CAPs.

(c) Inter-Cooperative Associations (ICAs) formed by several CAPs tocarry out large-scale factory-type production of livestock pro-ducts, vegetables, and other plant products in greenhouses. They

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have little land and depend almost entirely upon purchasedfeed and other materials for carrying out production opera-tions. In addition, there are mixed or joint associationsof State Enterprises and Agricultural Production Cooperatives.

(d) Individual Farms (Gospodari Agricole Individuale), small areaslocated mainly in mountainous regions where large-scale mechan-ized farming operations are difficult.

2.20 UASs accounted for 21% of the total arable area, CAPs for 74%, andindividual farms for about 5% in 1975 (Table 2.7). However, individual plotsoperated by members of CAPs accounted for 8.1% of the arable land in CAPs.Individual farmers and members of CAPs operated 12.8% of the total arablearea.

Table 2.7: LAND DISTRIBUTION BY TYPE OF PRODUCTION UNIT, 1975

Arable Pasture & Vine-Unit Area Meadow yards Orchards Total

…'-------- -------- 000 ha …-------------------

Total, State Agri. Units 2,053 2,300 62 77 4,492State Agr. Enterprises 1,659 280 55 64 2,058Other State Units 394 2,020 7 13 2,434

Total, Agri. Prod. Coops. 7,229 1,300 256 262 9,047Operated by CAPs 6,449 1,267 145 213 8,074Operated by CAP members 780 33 111 49 973

Individual farms 459 846 11 91 1,407

Grand Total 9,741 4,446 329 430 14,946

------------- percentage composition ------------

Total, State Agr. Units 21.1 51.8 18.7 18.0 30.1State Agr. Enterprises 17.0 6.3 16.6 15.0 13.8Other State Units 4.1 45.5 2.1 3.0 16.3

Total, Agr. Prod. Coops. 74.2 29.2 78.0 60.8 60.5Operated by CAPS 66.2 28.5 44.1 49.5 54.0Operated by CAP members 8.1 .7 33.9 11.5 6.5

Individual farms 4.7 19.0 3.3 21.2 9.4

Grand Total 100.0 100.0 100.0 100.0 100.0

Source: Statistical Yearbook, 1975.

2.21 A little over half of the pasture and meadow land is in UASs, butIASs account for only 6% and other state units for 45% of the total. Thereare approximately 2 million ha of pasture and meadow land in state ownership(traditional communal land) used for grazing by individual farmers located

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mainly in mountainous and hilly areas and members of CAPs. Individual farmersalso have a large area of pasture and grazing land, 846,000 ha or 19%, and CAPshave about 29% of the total.

2.22 Land in vineyards and orchards is distributed among units about thesame way as arable land, with CAPs accounting for 78% of the vineyards and 61%of the orchards. Individual farms have over 21% of the orchards, but only 3%of the vineyards.

2.23 Individual farmers and members of CAPs account for large shares oftotal production of crops and livestock, considering the small area of arableland they operate. For example, members of CAPs produced almost 10% of thecereals, 36% of the potatoes, and 36% of the vegetables in 1975 although theyoperated only 8% of the arable land (Table 2.8). Individual farmers produced16% of the potatoes and 7% of the vegetables. Members of CAPs and individualfarmers usually produce labor-intensive crops which have a high value of out-put per hectare.

Table 2.8: PRODUCTION OF SELECTED CROPS BY TYPE OF PRODUCTION UNIT, 1975

All Oil- Sugar Vege-Unit Cereals Seeds /1 beets Potatoes tables

…'--------------- '000 tons ----------…---_____

Total State Agr. Units 3,546 161 14 196 448State Agr. Enterprises 3,382 159 10 172 114Other State Units 164 2 4 24 334

Agr. Prod. Coops. 9,836 646 4,888 1,104 991Members of CAPs 1,480 - /2 2 970 909Individual farms 404 - /2 1 446 170

Grand Total 15,266 807 4,905 2,716 2,518

-------------Percentage Composition ------------

Total State Agr. Units 23.2 20.0 0.3 7.2 17.8State Agr. Units 22.1 19.7 0.2 6.3 4.5Other State Units 1.1 0.3 0.1 0.9 13.3

Agr. Prod. Coops. 64.4 80 99.7 40.7 39.4Members of CAPs 9.7 /2 /2 35.7 36.1Individual farms 2.7 /2 /2 16.4 6.7

Grand Total 100.0 100.0 100.0 100.0 100.0

/1 Sunflower and others./2 Less than 1,000 ton or 1%.

2.24 Individual farmers and members of CAPs are especially important inlivestock production. In 1975, CAP members produced 33% of the meat, 38% ofthe milk, 31% of the wool and 48% of the eggs. Much of the livestock production

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was from feed purchased or received as wage payments from CAPs or obtainedfrom state enterprises if there was a contract for delivery of animal or

animal product between processing state enterprises and the livestock farmer.Individual farmers produced 13% of the meat, 20% of the milk, 12% of the wooland 14% of the eggs. Grazing of cattle and sheep on state-owned pasture andmeadow land was a major source of feed for livestock produced by individualfarmers. Livestock production has been an important way of utilizing familylabor of individual farmers and CAP members which otherwise might not beemployed.

Table 2.9: LIVESTOCK PRODUCTION BY TYPE OF PRODUCTION UNIT, 1975

Total TotalUnit Meat Pork Milk Wool Eggs

('000 ton) ('000 hl) ('000 ton) (mil.)

Total State Agr. Units 601 369 6,612 6,367 1,566State Agr. Enterprises 561 354 6,322 5,386 1,512Other State Units 40 15 290 981 54

Agr. Prod. Coops. 515 225 12,365 11,620 486Members of CAPs 688 279 16,753 9,861 2,624Individual farms 259 84 8,691 3,684 736

Grand Total 2,063 957 44,421 31,532 5,412

------------- Percentage composition -------------

Total State Agr. Units 29.1 38.6 14.9 20.2 28.9State Agr. Enterprises 27.2 37.0 14.2 17.1 27.9Other State Units 1.9 1.6 .7 3.1 1.0

Agr. Prod. Coops. 25.0 23.5 27.8 36.8 9.0Members of CAPs 33.3 29.1 37.7 31.3 48.5Individual farms 12.6 8.8 19.6 11.7 13.6

Grand Total 100.0 100.0 100.0 100.0 100.0

2.25 IASs are larger in size, more capital-intensive and less labor-intensive than CAPs (Table 2.10). In 1975, IASs on average had 5,263 ha perunit compared with 2,047 ha for CAPs. IASs are most numerous in Zone I(plains regions) where they operate almost 30% of the arable land. CAPsoperate about 80% of the arable land in Zones II and III (the foothills andmountain regions). IASs have more fixed assets and investment per ha thanCAPs, partly because CAPs rely upon Stations for Agricultural Mechanization(SAMs) for carrying out mechanized field operations while LASs have their ownmechanization units for carrying out field work. CAPs use a larger share oftheir land and labor to produce labor-intensive crops like potatoes and sugarbeets than do IASs. Gross production per worker averages higher on IASs thanon CAPs because IASs generally have more fertile land, and a larger share ofland under irrigation, are more highly mechanized and utilize more fertilizer,herbicides and other current inputs per hectare than do the CAPs. Workers onIASs also are more fully employed than those on CAPs.

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Table 2.10: PRINCIPAL CHARACTERISTICS OF IASs, CAPs & SAMs, 1975

IASs CAPs SAMs

Number of units 391 4,419 743Total personnel ('000) 252 - 126

Number of families ('000) - 3,429 -Agr. area ('000 ha) 2,058 9,047Average area per unit (ha) 5,263 2,047 -Fixed assets (mil lei) 38,924 - 19,137Fixed assets per unit ('000 lei) 99,550 - 25,756Investments (mil lei) 5,429 4,777 3,185Investment per unit ('000 lei) 13,885 1,081 4,287Investment per ha (lei) 2,638 591 _Fertilizer inputs ('000 tons) 252 583 -

Fertilizer per ha of agr. land (kg) /1 122 72 _

/I Data in Appendix table 5.2 is for arable land only and therefore, notcomparable.

2.26 In 1975 there were about 230 ICAs formed by CAPs mainly for produc-ing livestock products based on feed sold to them by CAPs. Some ICAs alsohave been established to perform input supply and marketing functions for CAPs.Production of ICAs is included in that of CAPs in the tables referred to above.ICAs account for less than 6% of total livestock production.

2.27 There are approximately 500,000 individual farms with a total popu-lation of about 2.5 million. Many people from these farms work on UASs and innon-farm jobs. Individual farms average nearly 2 ha in size, but only aboutone-third is arable. However, they produce substantial quantities of crop andlivestock products on communal pasture leased from the State for grazing cattleand sheep.

D. Administrative Organization

Ministry of Agriculture and Food Industry

2.28 The MA has responsibility for production and marketing agriculturalproducts including processing and distribution of some fruits and vegetablesat retail levels and for supplying agriculture with production inputs andservices. The present MA was formed in 1973 by bringing together severalseparate departments and putting forestry in another ministry. In January1976 the National Water Council was separated from the MA and became an inde-pendent organization under a Minister. The Minister and Heads of Departmentsare nominated by the President of the Republic and two of these Heads ofDepartments and the Minister are members of the Council of Ministers. Thedeputy ministers are appointed by the Council of ministers. The MA has re-sponsibility for carrying out all directives relating to agriculture. The

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Ministry is led by a Management Council made up of Heads of Departments andspecialists and chaired by the Minister. From among the Management Councilthere is selected an Executive Bureau (also chaired by the Minister) forcarrying out day-to-day operations (see organization chart 9985).

2.29 The MA is composed of departments, general directorates, director-ates, centrals, trusts, and enterprises. The four departments are:

(a) Department of State Agriculture with one central responsiblefor operation of poultry enterprises and 37 trusts at the judetor district level responsible for operations of IASs.

(b) Department of Land Reclamation and Agricultural Constructionwhich has institutes and trusts responsible for design andconstruction projects such as those for irrigation, drainage,flood protection, erosion control and the like.

(c) Department of Food Industry which has seven centrals responsiblefor supervising enterprises in the various judets which processand market the following: meat, milk, sugar, fish, tobacco, oil-seeds and beer (and all other alcoholic beverages) and one cen-tral for the complex of activities in the Danube Delta. Thesecentrals guide and supervise operations of food processing enter-prises distributed throughout the country and handle marketingof their produce. Their headquarters are in Bucharest exceptthat for the Danube Delta, which covers several products and islocated in Tulcea.

(d) Academy of Agriculture and Forestry Sciences which has respons-ibility for all agricultural research and the production anddistribution of improved seeds, plants and breeding animals.It has 13 institutes, 6 central research stations and 41 expe-rimental farms covering an area of about 100,000 ha. It hasa professional staff of approximately 1,600 scientists and asupporting staff of 1,200. 1/

2.30 Other important centrals and trusts include:

(a) Central for Mechanization of Agriculture and Production ofEquipment which has one trust located in each of the 39judets (Agricultural Mechanization Trusts, AMEs). Theysupervise the operation of SAMs and plans for manufacturingagricultural machinery and spare parts. Headquarters for theCentral is in Bucharest.

1/ See Appendix Table 6.1 for a list of Institutes, Central Stations andResearch Stations and Map 11717 for their location. This list showsone research station for irrigation and drainage and one coordinateinstitute for meteorology and hydrology which were transferred fromthe Academy to the National Water Council in January 1976.

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(b) Central for Exploitation of Land Reclamation Systems whichhas 18 enterprises located in judets.

(c) Central for Marketing Cereals and Production of Feeds whichhas several feed-mixing enterprises and 39 enterprises locatedin judets responsible for grain marketing.

(d) Central for Vegetables and Fruits which is comprised of onetrust which directs and supervises processing enterprises,another trust which supervises greenhouse enterprises, and39 enterprises at the judet level which collect and marketvegetables and fruits.

(e) Central for Wine and Vineyards which has several enterpriseswhich take over and market grapes and process wine and relatedproducts.

(f) Trust for Textile Crops which has enterprises responsible formarketing and processing flax, hemp and cotton.

(g) Trust called Plafar which takes over primary processing andmarketing of medicinal plants.

(h) Trust called Protan which takes over non-food livestock by-products for transforming into animal feed.

2.31 Special enterprises purchase agricultural products for export. Theyinclude Romagrimex, Fructexport, Prodexport and Vinexport. However, foreigntrade in grains is planned and supervised by an organization named Agro-Exportof the Ministry of Foreign Trade and Economic Cooperation.

2.32 The 13 directorates (see Chart 9985) work directly under DeputyMinisters. They have coordinating functions with regard to planning and devel-opment, crop production, animal production, land fund, organization of coopera-tives, finances and prices, supplies and transport, and the like.

2.33 The MA has General Directorates for Agriculture and Food Industryin 39 judets and one inspectorate for Bucharest which plan and supervise agri-cultural programs at the judet level including those concerned with input sup-plies, marketing, and improving technology (Chart 9986 shows how GeneralDirectorates are organized at the judet level).

Bank for Agriculture and Food Industry (BAFI)

2.34 The BAFI is the Government's specialized agency for investment proj-ects in agriculture, food industry, silviculture, and the water sector. Itwas established in 1968 as a channel for, and administrator of, all investmentfunds provided under the State plan for the agricultural sector. Financing inagriculture had previously been done by a department of the National Bank ofRomania except investment in State Enterprises which was done by the InvestmentBank. BAFI is involved in all phases of project appraisal, execution and

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supervision. It has a large technical and economic staff located in Bucharest,in 39 county (Judet) branch offices and 57 sub-branches in cities located inimportant agricultural areas. One of BAFI's more important functions is theadministration of the account of the national budget, all Government invest-ment in State farms and enterprises. BAFI receives interest-free funds fromthe State budget for investment lending to cooperatives and repays the Govern-ment as it receives repayments of sub-loans from the cooperatives. BAFI hasthorough review and approval procedures for all investment projects. Inaddition to BAFI's review, all subprojects for more than lei 10,000,000(US$500,000) are reviewed and approved by the MA and those greater than lei70,000,000 (US$3.5 million) must be approved by the State Council. BAFI alsoprovides short-term credit to, and maintains settlement accounts for, allcooperative and State agricultural enterprises; it acts as fiscal agent forthe Government for collection of State revenues from these enterprises.

2.35 BAFI prepares lending programs for the agricultural sector (includ-ing the food industry) designed to implement the annual production plan. Bankstaff members work closely with MA officials in preparing credit programs, inestablishing annual and five-year production targets and in deciding whatamounts of production and investment credit are required to achieve targets.BAFI insures that proposed investment projects are financially sound and con-sistent with the national plan. CAPs can receive operating loans up to 60% ofthe value of the products they have contracted to deliver to marketing centralsor enterprises. Individual farmers also can obtain yearly production creditfrom local Bank offices.

2.36 Sources of domestic funds to BAFI include the State budget, depositsof IASs and CAPs, withholdings (as development funds) from incomes of CAPs,borrowings from the National Bank, and its own capital of 1,600 million leiof which 800 million lei is reserve fund built out of its operations. Loansfor financing export enterprises are supplied by the Foreign Trade Bank.Foreign funds, including those obtained from the World Bank, for agriculturaldevelopment purposes are borrowed under State approval and sponsorship.Interest rates charged by BAFI range from 2-5% annually (Table 2.11). Aninterest rate of 12% annually is charged on delinquent loans. Although in-terest rates appear low, it should be remembered that there is negligibleprice inflation. Total lending by BAFI as it stood at end 1975 by sectorswas as follows:

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Billion Lei Percent

Agriculture 17,230 42Food industries 9,810 24Home trade 1,930 5Enterprises for purchase of cereals 7,770 20Foreign trade 900 2Supply enterprises 1,700 4Other 960 3

40,300 100

The breakdown of lending by BAFI in agriculture was as follows:

Million Lei Percent

IASs 4,450 26SAMs 1,830 11CAPs 7,570 44ICAs 1,930 12Individual farmers and others 1,450 7

17,230 100

Source: BAFI balance sheet for 1975.

Table 2.11: ANNUAL INTEREST RATES OF BAFI

Percent

State Agricultural Enterprises 4Stations for Agricultural Mechanization 3Agricultural Production Cooperatives and Inter-CooperativeAssociations 2

Individual Farmers 2Agricultural Processing Enterprises 5Fruit and Vegetables Marketing Enterprises 3Cereal Marketing Enterprises 3Agricultural Supply Enterprises 4Agricultural Construction Enterprises 2

Source: Decree No. 234 of 1974.

2.37 The Ministry of Chemical Industry (MCI), the Ministry of InternalTrade (MIT), the Ministry of Foreign Trade (MFT) and the Ministry of Finance(MF) all play important roles in agricultural production and marketing. MCIproduces and delivers fertilizer and other chemicals to the General Directorateof Supply and Transport of the MA in accordance with plans approved by Govern-ment authorities. The MIT purchases food products from food industry enter-prises for internal distribution except some fruits and vegetables retailed

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directly by food industry enterprises. The MFT assist-s the agricultural exportenterprises in finding foreign markets and an agency of this Ministry calledAgro-Export has responsibility for all foreign trading of grains. In addition,the Ministry of Light Industry purchases and processes fibre crops includingflax, hemp, and cotton and the Ministry of Machine Building manufactures trac-tors and other farm machines for delivery to AMEs and IASs.

The National Union of Production Cooperatives (NUPC)

2.38 The NUPC was founded in 1966 by a Congress of Cooperative Farms tolook after the interest of CAPs and help implement agrarian policies of theGovernment. It undertakes social welfare programs for its members, administersthe pension fund, provides legal services, and reviews all contracts betweenCAPs and centrals for marketing and input supplies. The NUPC has representa-tives at the judet level who participate in agricultural planning and decisionmaking and operates five training centers for members throughout the country.It directs all non-agricultural activities of its members and approves theiremployment in non-farm jobs. A national Congress is held every five years todiscuss national policy objectives in agriculture and how CAPs can contributeto their achievement.

2.39 Organization of agricultural production at the farm level is es-pecially important, so it is described in some detail below.

State Agricultural Enterprises (IASs)

2.40 IASs are state-owned enterprises worked by state employees andmanaged by a Director who is appointed by the Department for State Agricultureof the MA. He also reports to the trust of IASs at the district (judet) leveland to the Workers Council of the enterprise. Each IAS usually has severalseparate farm units which specialize in the production of certain crops orlivestock. A Chief of Farm is responsible for managing the operations of eachfarm. Each IAS also has a mechanization unit. The Director is assisted by aChief Engineer and a Chief Economist (accountant) in making management deci-sions. Members of the Workers' Council include top management officials,Chiefs of Farms, representatives of the Communist Party and elected repre-sentatives of the workers (see Organization Chart 9987).

2.41 IASs have production, financial and investment plans which indicatefor each year the quantities and values of products to be produced, estimatedproduction costs, and planned profits. Products are sold to marketing enter-prises at prices set by the State. Production costs include outlays for mate-rials, labor, depreciation and financial costs (interest payments). Loans forworking capital to finance annual production are paid back from sale of pro-ducts. Planned profits after payment of loans, deductions for incentivepayments to good workers and the recovery of credits for small works aredistributed into three funds: (a) 10% to a consolidation fund, (b) 40% toan insurance fund, and (c) 50% to the state budget.

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2.42 The consolidation fund is retained by the IAS for financing smallinvestments. The insurance fund is at the disposition of the State Agricul-tural Department, and is used to reimburse losses due to the negative actionof natural factors. The determination of a calamity is made by a local commis-sion. A premium or bonus payment is made out of gross value of farm produc-tion to workers if actual profits exceed planned profits. Profits exceedingplan targets that may remain after payment of labor premiums are distributedas follows: 25% to the consolidation fund, 30% to the insurance fund, and 45%to the state budget.

2.43 Depreciation costs must be paid into an amortization fund for alldurable means of production, those with a life over one year and a value ex-ceeding 500 lei. Rates charged are based on acquisition costs and legal life-time which for selected items are as follows (years): farm buildings - 25 to50; tractors and tractor-drawn plows - 10; animal-drawn plows - 14; self-propelled combines - 14; orchards - 12 to 28; vineyards - 32; and food industrymachinery - 10 to 20. These amortization rates must be paid for the legal lifeof the item even though its actual life is shorter and must continue to be paidif the actual life is longer. The amortization fund is kept by BAFI and admin-istered by IASs according to law for financing new investments in agriculture.The Council of Ministers can transfer amortization funds among sectors althoughit has not yet been done.

2.44 Wage rates of workers are fixed by law. Eighty to ninety percent ofthe wages are paid on a monthly or semi-monthly basis, and the remainder at theend of the production year in March, and each quarter in the case of livestocksectors, if planned targets are met. Labor premiums up to three times monthlysalaries (25% of the annual salary) can be paid if production exceeds targetsor input materials are economised. Monthly wages vary depending on qualifica-tions and skills of workers.

Agricultural Production Cooperatives (CAPs)

2.45 Land, buildings and other property on CAPs are collectively ownedby members. In addition, members are allotted a small area for their personaluse (average of .15 ha per member in 1975) 1/ and own some livestock and farmbuildings. Like the IASs, each CAP usually has several farm units with aChief of Farm responsible for the operations of each farm. However, CAPs donot have farm machinery except that needed for hauling materials and perform-ing other work around farm buildings. Mechanized field operations are carriedout under contract with SAMs.

2.46 The General Assembly of the Cooperative which meets quarterly ormore often if necessary, approves production, financial and investment planswhich later must be submitted to the General Directorate of Agriculture ofthe district for approval. The General Assembly also must approve major con-tracts with suppliers, agricultural mechanization enterprises, and other

1/ It used to be 0.5 ha per family in the past.

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cooperatives, and decide how income is to be divided. All working adults,16-62 years of age, are cooperators and members of the General Assembly. TheGeneral Assembly elects a President, and one or more Vice Presidents, for twoyears. A Management Council made up of the President, Vice Presidents, someChiefs of Farms, the Chief Economist (accountant) and representatives of tech-nicians and cooperators meets twice each month or more often if necessary,and is responsible for coordinating daily operations. The President assurescontinuity of management and the fulfillment of decisions of the General As-sembly. He selects Chiefs of Farms and the Chief Economist, subject toratification by the General Assembly and approval by the District GeneralDirector of Agriculture and the local branch of BAFI (see Organization Chart9988).

2.47 CAPs prepare annual production, financial and investment plans forinternal use as well as for national development plans which show, amongother things, how production will be divided into six categories:

(a) deliveries to state marketing enterprises;

(b) payment in kind to stations for agricultural mechanization(SAMs) for services to be performed;

(c) distribution in kind to cooperative members;

(d) seed;

(e) feed inputs for use in the CAP; and

(f) welfare assistance in kind.

2.48 Deliveries to state marketing enterprises and payments in kind toSAMs are based on contracts with little or no flexibility. Contracts mustbe fulfilled before any other distribution of products can be made. In CAPs,net value of production is the amount available for distribution to membersfor work performed and for other purposes. Net value of production is grossvalue of production less production costs for materials and payments to SAMs.What remains from the net value of production is divided into three parts,approximately as follows:l/

(a) development fund - at least 18%;

(b) consumption fund - 73%; and

(c) other (social, cultural fund, welfare, etc.) - 9%.

1/ The allocation among a, b, and c may be varied considerably by theGeneral Assembly depending upon development needs of CAPs.

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2.49 The development fund is used for making new or replacing old capitalinvestments and for repayment of investment credit received from BAFI. In1975, the consumption fund was divided approximately as follows: (a) 80.5%for payment of members' labor, (b) 19% to a pension fund, and (c) 0.5% forcultural and social activities of the CAPs concerned. These percentages canbe modified within certain limits by the General Assembly.

2.50 Almost all workers receive wage payments on a monthly or semi-monthly basis as advance payments of their claims on the consumption fund.These payments are computed on the basis of production norms with one basicnorm equal to one day of work for an unskilled worker. The labor paymentfund is divided by the total number of norms earned by all cooperative mem-bers to obtain the value of one norm. Eighty percent of the labor paymentfund usually is paid out on a monthly or semi-monthly basis and the remainderat the end of the production year in March. Labor payments are made in kindas well as in cash. The wage payment system was modified in 1968 to guaran-tee a minimum monthly wage. It is 1,500 lei/month for livestock workers, andirrigation mechanics, 1,200 lei/month for vegetable, vineyard and orchardworkers and 40 lei per day for crop workers.

2.51 Cooperative members can be permanent or part-time workers dependingupon the decision of management. Permanent workers are employed 280 days ayear. The work day is 8 hours during low season and 10 hours during peakseason. Wage is the same for both 8 or 10 hours working day. Part-timeworkers are employed 100-120 days a year. The average annual work days are135 for working age population of the CAPs, which excludes those below 18 andabove 62 year olds. As an incentive to achieve high production levels, anindividual worker or group of workers can make pledges to achieve specifiedlevels of production from a plot of land or herd of animals allocated to themand receive 50% of any production in excess of the pledge in addition topayments for their labor. If they do not achieve the pledged level of produc-tion, the wages are limited to those as in para. 2.44.

2.52 Most families of cooperative members have several sources of in-come. Some family members are permanent workers or part-time workers oncooperative farms. Others may work as permanent or seasonal workers on stateagricultural enterprises or in non-farm jobs. In addition, families of coop-erative members produce products for sale and home use on personal plots andanimal products from feed obtained as wage payments or purchased from CAPs andstate enterprises.

2.53 Part of the Presidents and specialists of CAPs (Engineer Presidents,Chief Engineers, Chief of Farms, Chief Economists and Others) receive wagesfrom the state; in addition they receive norms calculated between 15-25% fromthe norms of the non-state employed Presidents, who receives norms between550-750. If he is not an engineer, the President does not receive a salarybut receives 720 norms annually.

Stations for Agricultural Mechanization (SAMs)

2.54 Romania has 743 SAMs, about one for every six CAPs and 12,000 ha ofagricultural land. They are supervised and coordinated by 39 agricultural

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mechanization Trusts at the judet level (para 2.30). *Each SAM employs about170 workers to operate machinery and perform maintenance and minor repairservices. Tractors and other farm implements are located at CAPs during cropgrowing seasons, but return to the headquarters of SAMs for storage, mainte-nance and repair after field work is completed.

2.55 SAMs perform almost all mechanical work associated with crop andlivestock production for CAPs and maintenance of machinery. They also haulinput supplies and products and perform mechanical operations for irrigation.SAMs are paid for their services at fixed rates for plowing, disking, sowing,cultivating, and other field operations, but usually receive a specified per-centage of crops for harvesting. Payments for harvesting are almost all inkind but taking all operation together, about 46% was paid in kind and 54%in cash during 1975. Rates charged for field operations differ for six zonesinto which the country is divided, being highest in regions where crop yieldsare highest. In the case of wheat, maize, sunflower and other crops which arequite highly mechanized, 25-30% of the yield is required to pay for themechanization services. SAMs enter into contracts each year with CAPs toperform field work and other operations. They also perform some work forprivate farmers.

2.56 Some Agricultural Mechanization Enterprises, like some State Agri-cultural Enterprises which are located in less productive soil areas, aremainly financed by the State Budget. They are operated by state employeesand are required to make payments annually to cover depreciation on invest-ments in machinery and buildings. Workers on SAMs receive bonuses or prem-ium payments for economizing on fuel and performing high-quality work whichcontributes to high yields. Wages and premiums of SAMs workers are coordi-nated with wage levels of their respective CAPs to provide incentives forgood performance.

Individual Farmers

2.57 Individual producers with small farms located in the hills and moun-tains where mechanization of farming operations is not possible produce somecrops and substantial quantities of animal products under contracts with statemarketing enterprises. They receive various kinds of financial assistancefrom the state including: short-term credit for purchasing feed concentratesfodder for producing dairy and other animal products and credit up to fiveyears for purchasing work animals, breeding stock, bee hives and the like atan interest rate of 3%, the same as charged to cooperatives. The interestrate on overdue loans for investment, however, is 10% for private farmerscompared to 6% for the cooperative members. No collateral is required ofprivate farmers; only a guarantee paper is signed. Default in repayment maylead to confiscation of animals purchased against loans if approved by a Courtof Law, but such cases are rare. Veterinary and related services are providedfree of charge.

Inter-Cooperative Associations (ICAs)

2.58 ICAs are production or processing units formed by CAPs or with IASsand other agricultural state units. ICAs are similar to IASs in some respects

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and different in others. They are operated by state employees who work forwages as in the case of IASs. However, capital required to establish ICAs issupplied by CAPs and other participating units either from their own sourcesor by loans received by participants from BAFI. Profits are disposed of intwo ways: (a) 20% to a development fund, (b) 70% is distributed among parti-cipating units in accordance with the share of capital supplied, and (c) 10%to other funds.

2.59 They hire a director for each of their activities (pigs or sheep) tomanage in the same manner as the directors of the IAS. ICAs have their presi-dent from one of the presidents of participating CAPs to manage their opera-tions. They have an administrative council made up of delegates who areelected by General Assemblies of member CAPs. There were 230 ICAS in 1975.Most of them are very large-scale units for livestock production. A recentlaw permits the establishment of ICAs by CAPs in cooperation with IASs andother state agricultural units. Hence, it appears that increased emphasiswill be placed on establishing large-scale factory-type livestock farms withcapital furnished by IASs as well as CAPs.

Incomes and Taxes

2.60 Wages of workers on IASs vary depending upon skills, technicalabilities, and managerial responsibility (Table 2.12). Wage rates and salarieslisted here for 1975 have been increased considerably according to 1971-75Plan guidelines. The average minimum wage for an unskilled worker has beenincreased from 1,327 lei per month in 1970 to 1,543 lei in 1974.

Table 2.12: WAGES OF WORKERS IN STATE ENTERPRISES, 1975(Lei per month)

Lowest Highest Number ofWorkers Category Category Categories

Agricultural workers 1,200 2,325 5Workers in repair units 1,490 2,700 8Tractor and combine drivers (per day) 88 135 4

Technicians

Economists 2,005 2,540 6Administrative staff 1,265 1,730 9Engineers and veterinarians 2,320 3,085 6Directors 1/ 3,200 5,660 -

1/ Including management allowances which vary with the size of enterprises.

Source: Law No. 57 of 1974.

2.61 Agricultural workers on State Enterprises and CAP members pay incometaxes which rise progressively as incomes rise. For example, income taxes in-crease from 259 lei (12.95%) for workers in state enterprises with monthlywages of 2,000 lei to 648 lei (16.2%) for workers with monthly wages of 4,000

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lei (see Appendix table 1.7). CAP members who work part time in State Enter-prises pay income taxes on their incomes at the same rates as those of fulltime workers. CAP members also are taxed at progressive rates on theirincomes from working on these farms. For example, income taxes range from 210lei for taxable annual income of 3,001 lei (7%) to 560 lei for taxable annualincome of 6,501 lei (8.6%). CAPs used to pay annual land taxes based on theproductivity ratings of land and the value of private buildings located onCAPs but those were replaced in 1969 with income tax. 1/

2.62 - Incomes of CAP members also may differ widely since they receive in-come from products produced for home use and sale and off-farm employment aswell as income from work on CAPs, but they probably average slightly lowerthan those of workers in state enterprises. The State has introduced a systemof guaranteeing full time workers on CAPs a minimum income (see para 2.50)similar to minimum wage payments of state enterprises. If a cooperative can-not pay the minimum income from net production, it can get for this purposea loan at no interest from BAFI which is repayable in one year.

Marketing and Prices

2.63 Marketing centrals of the MA have responsibility for purchasing,grading, processing, storing and marketing agricultural products (see organi-zation chart 9989 for flow of agricultural products to markets). Marketingcentrals usually have district enterprises and centers which organize thecollection, transport and delivery of farm products to collection or deliverydepots located throughout the country from which agricultural products moveto processing centers and later are distributed to domestic and export agen-cies (paras 2.29-2.31). CAPs and IASs retain some farm products for seedand feed for livestock but most sales by these enterprises move throughState marketing centrals. Individual farmers and members of CAPs sell farmproducts produced on personal plots in peasant markets and to marketingcentrals under contracts.

2.64 All sales of IASs move directly to State marketing enterprises atprices established in advance by law. CAPs make contracts with marketingcentrals to deliver specified quantities of farm products at prices fixed bylaw. They deliver a large part of their production to State marketing enter-prises to fulfill obligations to SAMs. Penalties fixed by law are specifiedfor non-fulfillment of contracts. Prices of farm products sold by individualfarmers and members of cooperatives in peasant markets are permitted to fluc-tuate within certain limits specified by local bodies (Popular Council of thedistrict). Contract prices received by CAPs have averaged substantiallyhigher than sale prices received by IASs since 1973 (Table 2.13). However,sale prices received by CAPs for farm products not covered by contracts andsales of private farmers, called acquisition prices, average lower thancontract prices.

1/ Law No. 61/1968 and Decision of Council of Minister's 1108 of 1969.

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Table 2.13: PURCHASE PRICE FOR CROP PRODUCTS IN 1975

/1Lei per Ton

Crop IAS CAP AcquisitionProduct Takeover Contract Prices

Wheat 1,000 1,370 1,050Rye 900 1,250 950Barley 800 1,100 950Two-row Barley 900 1,500 1,150Rice, rough 3,400 4,000 _Maize 800 1,150 1,000Sunflower 2,030 2,030 1,550Soybeans 2,900 3,600 -Linseed for oil - 4,800

/1 These prices are for specified conditions with regard to weight perhecto-litre, foreign materials, and moisture content. Prices listedwere not changed after 1973 except for soybeans.

Source: Romanian authorities, June 1975.

2.65 Most farm crop prices have not changed significantly since 1963. Itis estimated that average farm product prices increased 2% from 1963 to 1973 asthe result of upward adjustments for some products 1/. Prices of major crops--wheat, maize, barley, sunflower, vegetables and fruits--differ by regions de-pending upon production costs, but those for other farm products are uniformthroughout the country. Livestock product prices were increased substantiallyfor meat animals except poultry in July 1973 (Table 2.14). CAPs and individualfarmers receive higher prices for pigs and cow milk than do IASs; prices paidfor cattle, heifers and poultry are the same to all producing units. CAPs arepaid a premium of 0.50 lei/litre of cow milk by state enterprises for de-liveries exceeding those during the preceding year in order to encourageincreased production.

1/ In 1971 Law 19/1971 was introduced which governs the prices and tariffsystem.

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Table 2.14: FARM PRICES FOR LIVESTOCK PRODUCTS IN 1975(Lei per kg liveweight)

Old Price Price since July 1973

Heifers151-220 kg 8.00 9.00221-320 kg 9.00 10.00321-400 kg 9.30 13.25over 400 kg 9.80 14.35

CattleFirst quality 8.80 11.30Average quality 8.00 10.00

Pgs-CAPs and individual farmers

Lowest, 80-90 kg 8.30 8.50Highest, 100-120 kg 10.50 12.00

State enterprisesLowest, 80-90 kg 8.30 8.30Highest, 100-120 kg 9.50 10.50

PoultryBroilers 15.30 13.00Hens 13.95 11.70

Cow MilkAt Farm (1 litre) - 1.75-2.20

Source: Decree No. 410 of 1973.

2.66 Sales of production inputs such as seed, fertilizer, pesticides,herbicides, tools and equipment also are made to IASs and CAPs under contractswith State Enterprises responsible for manufacture and delivery of these items.The contracts specify prices to be paid and quantities to be delivered. Alloc-ation of inputs among types of production units is decided by the Plan inpreparing production plans. Prices paid for fertilizer have not changed inrecent years.

E. Planning and Investment Procedures

2.67 All economic activities relating to production, marketing, investmentand finance in the agricultural sector (as in others) are controlled by theFive-Year Plan and by Annual Plans for socio-economic development. The Five-Year Plan sets major targets to be achieved each year while the Annual Plan

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makes adjustments in annual targets according to achievements the previousyear. Plans are comprehensive in that they cover the bulk of economic activ-ities in all sectors and are obligatory as they are published documents oflegal authority.

2.68 In agriculture the planning process begins at the farm level underguidelines issued by the judet agricultural bodies within the framework of thenational plan. IASs and CAPs draw up tentative plans for production, invest-ment, financing, employment and the like, taking into account indicators thatmust be followed during the planning period. Plans are submitted to judetagricultural bodies where they are reviewed before being sent to the MA whichaggregates the proposals into a first draft plan for submission to the StatePlanning Committee. After reviewing the plan for agriculture together withplans for other sectors and after making the necessary adjustments and correla-tions at the national level, the Five-Year Plan and Annual Plan must be ap-proved by the Grand Assembly before becoming law. Plans then move back toIASs and CAPs through the MA and Judet Directorates for Agriculture, esta-blishing plan targets in production and investments for individual farm units.Marketing centrals also participate in this planning process. 1/

2.69 Several different criteria (indicators) are used in making deci-sions concerning resource use and investment projects. Agro-industry proj-ects, in particular, require justification with regard to their location.These projects must fit into a scheme of "territorial systematization".This means that the location of the project, where appropriate, must fitinto the system or network envisaged by the overall national economic planof development. The most important indicators for investment projects are:

(a) The total cost of the project and volume of constructionand assembly works (the amount of the investment determinesthe level of approval required, i.e., an agricultural proj-ect costing over 70 million lei requires approval by theCouncil of Ministers);

(b) The volume of imports necessary for carrying out the project;

(c) The maximum quantity of annual imports required in theoperation of the project;

(d) The minimum quantity of annual production output intendedfor export;

(e) The cost price per unit of commodity output and theoperating expenditure per 1,000 lei of commodity output;

(f) The length of time after commissioning for the achieve-ment of projected economic indicators;

1/ See Volume II, Annex A, Planning and the Planning System in Romaniaof IBRD Report No. 492a-RO, Current Economic Position and Prospectsof Romania, October 11, 1974, for additional details.

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(g) The length of time to recuperate the total investment fromprofits;

(h) The total of profits and accumulations that will be ob-tained after the completion of the project;

(i) Labor productivity, i.e., lei value of output per wageearner as well as ton, kg, or piece output per laborer; and

(j) The total duration of each stage of construction and thetime limit for commissioning.

2.70 New investment projects must be analyzed to determine whether itmight be more economic to achieve the added output through development andimprovement of existing facilities. Investment decisions are based on answersto such questions as the following: (a) how much increased output could beachieved with-existing capacities by adding additional labor shifts andoperating 24 hours in the case of processing plants? (b) how much increasedoutput could be obtained by cutting down on waste of materials? (c) how muchincreased output could be obtained by adding lines of equipment to existingplants or in the case of a livestock farm by replacing breeding stock? and(d) how much can be achieved through modernization of existing construction,like the provision of better ventilation of poultry houses which has beenshown to give an increase in production?

2.71 Prices set by the State for products and inputs are taken into ac-count in making plans for the use of land, material inputs, and investments.They affect the value of gross production, profits of IASs and net productionof CAPs. Romanian authorities distinguish between seven kinds of agriculturalprices: (a) plan prices, (b) cost prices, (c) takeover prices to IASs, (d)contract prices to CAPs, (e) acquisition prices, (f) prices at peasant markets,and (g) consumer retail prices. Plan prices have only statistical importancefor use in measuring growth in value of agricultural production. Cost pricesmeasure unit production costs and are used for comparing production efficiencyamong farms. As explained above, all prices are fixed by the state pursuantto the law and peasant market prices are permitted to vary from State priceswithin certain limits. Decisions concerning resource use at the farm levelare influenced mainly by production plans and by the distribution of inputsand investment funds which are controlled by the State.

2.72 Farm production units take into account technical production pos-sibilities and expected cost rates for purchased inputs and prices of productsin deciding how they can maximize production and financial returns. Estimatesof how financial returns can be maximized from the resources that productionunits have under their control or can be increased by making additional in-vestments are a major consideration in preparing plans submitted by farm pro-duction units to judet offices of the Directorates of Agriculture. However,these plans may be revised by officials at the judet and national levels whereresource limitations and national objectives for economic and social develop-ment can be taken into account.

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2.73 Investments in agriculture can be classified by origin under twomain headings (Table 2.15). They include:

(a) Investment from State Funds made from the State budget,within the annual and five-year State plans, (i) for thedevelopment of State agricultural units and for othergeneral agricultural development works (irrigation, embank-ments, drainage, etc.), and (ii) long-term loans made toCAPs for their development.

(b) Investment from Own Funds made by CAPs out of their ownfunds and by State agricultural units out of profits.

2.74 Agricultural investments are financed in three different ways:

(a) direct interest-free financing from the State Budget forall State units including IASs;

(b) long-term loans from the State Budget, bearing interest andrepayable by installments, for CAPs; and

(c) self-financing from own resources by State agriculturalunits and CAPs.

2.75 Investments from state funds of IASs and SAMs are financed throughthe BAFI out of funds constituted for this purpose (with amortization payments,proceeds from liquidation of certain fixed funds, and budgetary allocations)after analysis by supervising bodies and approval by the State Plan. Theyinclude construction of major production installations and other activitiessuch as mechanization of agriculture and development of plant and livestockproduction. Investments from own funds of IASs financed from the consolida-tion fund (para 2.41) are used for works necessary for developing productionactivity which will give quick economic results. BAFI makes loans for minormechanization and other agricultural investments giving a quick return suchas small equipment, buildings, roads, and the like. Investments of SAMsare financed from the State budget through the BAFI within the limits ofapproved expenditures for acquisition of equipment items, construction,improvement and conversion of existing buildings, and various installations.

2.76 Investment of CAPs are financed from the CAPs' development fund(para 2.48) and from long-term loans and minor-mechanization loans grantedby the BAFI. Planned investments of CAPs sometimes exceed those which canbe financed from their own financial resources in which case they may obtainloans from the BAFI. The volume of long-term loans that can be granted toCAPs is decided annually in the State plan and distributed among differentactivities and districts (judets) by the Ministry of Agriculture and FoodIndustry in consultation with the NUAPC and the BAFI. District branches ofthe BAFI, together with agricultural boards and cooperative unions at thejudet level, prepare a report for each cooperative, setting out its request,

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evaluating the loan and the objective and activities of the long-term invest-ments, both new and current, for which loans have been granted and assess theamount of the loan. Loans are repaid in annual instalments agreed uponbetween the BAFI and CAPs under terms provided by the law.

Table 2.15: METHODS OF FINANCING AGRICULTURAL INVESTMENTS

ProductionSector Source Method Use

A. Investments from General State State financing Increasing, modern-State Funds accumulation izing and replacing- state units and amortization fixed equipment

(IASs, SAMs) fund- agricultural General State Long-term loans Expanding and mo-

production accumulation dernizing produc-cooperatives tion.

B. Investments fromunits' funds- state units Profits from Self-financing Expanding and mo-- IASs state agricul- dernizing produc-

tural enterprises tion.(consolidationfund)

- SAMs General State State financing Buildings and in-accumulation and stallations of lowamortization fund value (under 50,000

lei per item)- IASs and SAMs General State Loans (up to Minor mechanization,

accumulation 3 years) modernization of in-stallations and otherproductive work.

- Agr.Production Statutory awarded Self-financing Increasing and re-Cooperatives shares of the net placing fixed means

(CAPs) production of of cooperatives orcooperatives participation in(Development Fund) work performed in

association withcooperatives.

- Agr.Production General State Loans (up to Minor mechanization,Cooperatives accumulation 3 years) modernization of in-

(CAPs) stallations and otherproductive work.

Source: Supplied to the 1976 review mission.

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III. PERFORMWANCE DURING THE LAS',T TIJO DECADES

A. Structural Transformation of Agriculture

3.01 The present structural organization of agriculture in Romania isthe result of a gradual approach to the socialization of agriculture. Thetransformation took place in phases beginning in 1945 and lasting almost twodecades. Different forms of association involving varying degrees of social-ization were adopted during the transition period. The gradations in degreeof socialization persist today in the differen ces between IASs and CAPs.

3.02 The first moves to reorganize the agricultural sector in the imme-diate postwar period involved a land reform designed to redistribute estate-owned land, about 10% of the total agricultural area, partly among peasantfamilies and partly by the creation of state farns. Between 1949 and 1959,the state took steps to ensure a fair distribution of profits and landsthrough the redistribution of land and the establishing of certain stringentcompulsory delivery quotas and these steps led to the disappearance of Kulaks,a wealthier class of peasants, who had exploited agricultural employees.These measures were concomitant with the socialization of agriculture whichbegan when collectivization was initiated in 1949. According to Romanianauthorities, early attempts to organize farming in large-scale cooperativeunits were slow due to lack of material resources -- buildings, tractors,machinery, equipment, and supplies -- and to lack of administrative exper-ience and managerial talent required to operate large farm units efficiently.

3.03 The problems faced under the collectivization program soon led theauthorities to the realization that an alternative approach was required.Consequently, the peasants were encouraged to group themselves into variousforms of worker associations which retained the principle of land ownershipand were less rigidly organized than the collectives. In 1951 this association principle was formalized by the creation of the Agricultural Association("Intovarasire Agricola") in which individual land ownership was retained butland was pooled within the Association and remuneration was according to laborinput. The Associations, now extinct, served as an intermediary form oforganization during the 1950s which at their peak accounted for some 32%of the total arable land. Although the drive to collectivize agriculturecontinued through this period, by 1958 collectives accounted for less thanhalf of all arable land and private farms for some 45%.

3.04 The final movement for collectivization came during 1958-62. Duringthis period both private farms and the Agricultural Associations were encour-aged to form cooperatives ("Cooperative Agricole de Productiet ") which becamethe dominant form of organization after 1962. By 1965 the Associationswithered to insignificance and private farm ownership fell to about 5% of allarable land. During the same period there was also some marginal increase inthe land under ownership of the state units resulting mainly from land re-clamation. Some transfer of land from private ownership to CAPs also took

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place. Since the mid-1960s, there has been very little change in the distri-bution of land among different kinds of production units (Table 3.1).

Table 3.1: AGRICULTURAL AREA BY TYPE OF OWNERSHIP 1955-75(Percentage Shares)

Agricultural Land Arable Land1955 1965 1975 1955 1965 1975

State Units (UASs) 2505 30.2 30.1 13.7 20.0 21.1Cooperatives (CAPs) 6.4 60.8 60.5 8.2 75.3 74.2Agr. Associations 2e8 0.4 - 4.0 0.1 -

Individual Farms 65.3 8X6 9,4 74.1 4.6 4.7

Total 100.0 100.0 100.0 100.0 100.0 100.0

Source: Statistical Yearbook, 1975.

3.05 The structural changes have not been many in Romanian agriculturesince 1962. The rapid development of greenhouses for vegetable productionsince 1970 and the establishment of large-scale ICAs since 1973 have beenthe only notable developments. The area under greenhouses presently totals1,500 ha for vegetables besides 40 ha used for flower production. About 1,100ha out of this area is managed by State Centrals, 237 ha by CA-Ps and 163 haby ICAs. Approximately 70% of the production of main vegetables is exported.A further increase of 800 ha in greenhouses during 1976-80 is planned. Thecrop distribution by areas and enterprises is roughly as under:

CAPs & ICAs Centrals Total

Tomatoes 291 500 791Cucumbers 69 350 419Peppers 19 - 19Others /1 21 250 271

Total 400 1,100 1,500

/1 Strawberries, cabbage, greenbeans, red peppers, etc.

B. Output and Productivity Changes

National Trends

3.06 Although crop yields have fluctuated widely from one year to thenext, Romania's overall expansion of total agricultural production has beenremarkable during the last two decades. During the two decades since 1955,gross agricultural production (social product) has almost doubled, growingat a compound annual rate of 2.9% from 1955 to 1975. The annual growth rate

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accelerated from nearly 2% during 1955-65 to 4.4% during 1965-75. As totalpopulation increased slightly less than 1% annually, agricultural output percapita rose 2.0% annually providing the basis for higher levels of food con-sumption per capita and larger agricultural exports. Agricultural exportsamount to about 7% of the total output. Total agricultural exports werevalued at 6.5 billion lei 1974 (Table 2.3) compared with a gross value ofagricultural production of 93.8 billion lei in 1975. As the value of totalagricultural production increased from an annual average of about 47 billionlei in 1954-56 to 90.0 billion lei in 1971-75, it appears that the shareexported increased greatly while domestic food consumption also improved.

3.07 Gross agricultural production has not increased at a steady pace;despite fluctuating widely from one year to the next, it has moved upward fromone plateau to another with technological advances. For example, annual pro-duction averaged about 20% larger in 1959-61 than in 1954-56; it increased toanother level in 1966-70, about 50% higher than in 1954-56 and then increasedto a record level in 1972-75 of 96% above 1954-56. The reasons for thisbehavior in the growth of total agricultural production cannot be determinedvery precisely, but it may be mainly due to cyclical changes in weatheraffecting crop yields. The changing structural organization of farming unitsand uneven growth in the supplies of fertilizer and other current inputs andin mechanization of farming operations have contributed to upward spurts intotal agricultural output.

3.08 Livestock production has grown at a higher rate than crops and hasvaried less from year to year than crop production. Total livestock productoutput increased 4.0% annually from 1955 to 1972-75 while total crop outputincreased by 2.1%. Livestock products have increased in relative importance,accounting for 43% of total agricultural production in 1975 compared with 31%in 1955 (Table 3.2).

Table 3.2: COMPOSITION OF AGRICULTURAL PRODUCTION(Percentage Shares)

1955 1960 1965 1970 1974 1975

Crops 68.9 65.3 63.2 58.8 58.5 57.0Livestock products 31.1 34.7 36.8 41.2 41.5 43.0

Total 100.0 100.0 100.0 100.0 100.0 100.0

Note: 1955 and 1960 reflect 1955 prices; 1965 and after reflect1963 prices.

Source: Statistical Yearbook, 1975.

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3.09 Romanian statistics show that national income from agriculture hasincreased only slightly less rapidly than gross agricultural production.National income from agriculture is the value of gross agricultural produc-tion less material expenditures including depreciation of capital goodssuch as farm machinery and buildings, intermediate products, fertilizer andother purchased inputs. Material expenditures have increased more thannational income from agriculture, accounting for 48% of the gross value ofagricultural production in 1971-75 compared with 38% in 1954-56 (Table 3.3).

Table 3.3: CHANGES IN VALUE OF GROSS AGRICULTURAL PRODUCTION,MATERIAL INPUTS AND NATIONAL INCOME FROM AGRICULTURE

Annual Averages1954-56 1960-65 1966-70 1971-75

Values Billion Lei

Gross Production 47 57 71 90Material expenses 18 22 31 43National Income 29 35 40 47

Index Numbers 1954-56 = 100

Gross Production 100 121 151 191Material expenses 100 122 172 239National income 100 121 138 162

Composition Percentage Shares

Gross Production 100 100 100 100Material expenses 38 39 44 48National Income 62 61 56 52

Source: Statistical Yearbook, 1975 (for percentages) and figures as re-ported in Scinteia, February 5, 1976 (President's Speech to theCongress of the Popular Councils).

3.10 Gross agricultural production increased steadily each year during1971-75 and in 1975 it was three times larger than in 1950. On the other-hand, national agricultural income reached a record high in 1972, thanks toexceptional weather conditions, and declined slightly during 1973-75 due toclimatic conditions.

3.11 The composition of inputs used in agricultural production haschanged greatly during the last two decades as fixed assets (farm machinery,buildings and the like) more than tripled while the number of farm workersdeclined by 39%. Fertilizer use increased from only 22,000 tons (activesubstance) in 1955 to 929,000 tons in 1975. Irrigated area increased

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from only 43,000 ha in 1950 to 1.5 million ha at the end of 1975. Total agri-cultural area has increased only about 6% since 1955 (see Table 2.1). Landreclamation programs helped to increase the arable area from 9.4 millionha in 1950 to 9.7 million ha in 1975.

3.12 Productivity of Romanian agriculture has increased greatly in thelast two decades as shown by growth of national income from agriculture perworker and per hectare of agricultural land. Land productivity increased morethan 50% from 1955 to 1975 while labor productivity increased by 100%. Butaverage output per unit of fixed assets has declined slightly as capital goodshave been substituted for land and labor. Net product per agricultural workeraveraged almost two and one half times larger in 1971-75 than in 1954-56(rising at a compound annual rate of 5.5%). National income from agricultureaveraged 18 billion lei larger per year in 1971-75 than in 1954-56 (Table3.3). Growth of labor productivity has supplied a surplus that was used toimprove incomes of agricultural workers and to supply capital for expandingfuture production in agriculture and other sectors.

Crops

3.13 Major changes in use of arable land in the last two decades includea reduction of about 1.0 million ha in cereals for grain, an increase of al-most one million ha in fodder crops for development of livestock subsector,and to a lesser degree increases in pulses, vegetables, potatoes and technicalcrops including sugar beets, sunflower, and flax. The growth in fodder cropsis mainly annual crops for hay and silage, although there also have been smallincreases in perennial hays like lucerne and clover. Some maize and othercereals formerly grown for grain now are used for green feed or for makingsilage.

3.14 Despite a reduction of about 14% in the area under cereals for grainfrom 1954-55 to 1971-75, total grain production increased by 97% as yield perha more than doubled (Table 3.4). Annual growth rates in yields per hectarewere especially high for wheat and barley (4.3%), and maize (2.5%) but was lowfor oats. Rising yields per ha have more than offset declines in areas underwheat, barley and maize. Only in the case of oats has production declined,and this has been due to a reduction in the area grown (Table 3.4). Totalgrain production per person of the total population increased from 485 kg in1954-55 to 711 kg in 1971-75, an average higher than in most other Europeancountries.

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Table 3.4: PERCENTAGE CHANGES AND COMPOUND ANNUAL GROWTH RATES INCROP AREA, YIELD AND PRODUCTION, 1954-55 TO 1971-75

Percentage Changes Annual Growth Rates (%)Crop Area Yield Production Area Yield Production

GrainsWheat and rye -15 132 97 -0.8 4.3 3.5Barley -12 132 103 -0.7 4.3 3.6Oats -75 12 -71 -7.2 0.7 -6.5Maize - 5 63 54 -0.3 2.5 2.2Rice 44 - 7 34 1.8 -0.4 1.5

Total -14 90 64 -0.8 3.3 2.5

Technical CropsSunflower 66 68 172 2.6 2.7 5.2Sugar beets 70 64 179 2.7 2.5 5.3Tobacco 42 12 62 1.8 0.6 2.5Flax for fibre 108 25 160 3.8 1.1 4.9Flax for oil 186 63 366 5.4 2.5 8.0Hemp -52 75 -15 -3.6 2.9 -0.8

Total 61 - - 2.4 - -

Potatoes 14 16 35 0.7 0.8 1.5

Vegetables 96 13 119 3.4 0.6 4.0

Fodder CropsPerennials for hay 130 46 245 4.3 1.9 6.4Annuals for hay -66 26 -36 -4.0 1.2 -2.2Green feed 291 11 750 7.1 0.5 11.3Silage 1009 1 990 12.8 0.1 12.7Root crops 84 117 299 3.1 4.0 7.2

Total 96 - - 3.4 - -

Source: Computed on a 20 years basis from Statistical Yearbook 1975. SeeAppendix, Table 3.2.

3.15 The most notable change in pulses is a very large increase in soy-bean production resulting from the larger area grown and higher yields.Romania now grows about 150,000 ha of soybeans annually. Soybeans have be-come an important source of protein meal for livestock production as well asoil for human consumption.

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3.16 Sunflower seed production also has grown at a rapid rate, 5.2%annually; about half was due to increased area and about half to higheryields. Despite the rapid growth in soybean production in recent years,sunflower production still was about four times as large as soybean productionin 1971-75 (Table 2.5). Production of flax grown for oil and fibre also hasgrown at high annual rates, 8.0% and 4.9% respectively, due to increases inyields as well as in areas grown. Sugar beet production increased by 5.3%annually due to increases in the area grown and rising yields. Tobaccoproduction increased 2.5% a year. Among other important industrial crops,only hemp shows a small decline in production from 1954-55 to 1971-75.

3.17 Potato production increased at a more modest rate, 1.5% annually;but vegetable production increased 2.8% a year.

3.18 Fodder crop production has been increased greatly in the last twodecades to provide roughage feed for livestock. The area under fodder cropshas doubled since 1955, and in 1971-75 accounted for 1.6 million ha, 16.2%of the total area under crops. Fodder crops include perennials and annualsfor hay, green feed, silage, and root crops. Production of perennials forhay increased at an annual rate of 6.4% from 1954-56 to 1971-75, but annualsfor hay declined. Production growth rates of crops grown for green feedand silage have been very high, 11.3% and 15.4% annually, respectively.Production of root crops for feed increased 7.2% annually (Table 3.4).

3.19 Fruit and grape production has not expanded as rapidly as thatof field crops (Table 3.5). Fruit production increased at an annual rateof only 1.8% but the area of orchards has been increased greatly in recentyears, so production can be expected to grow at high rates in the next fewyears as trees mature and reach fruit-bearing age. The area in vineyardsis also being increased and grape production can be expected to rise morerapidly than in recent years.

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Table 3.5: FRUIT AND GRAPES - AREA, YIELD AND PRODUCTION

1955-56 1971-75 Change from 1955-56 to 1971-75Fruit Average Average Percent % Annual Growth

Area ('000 ha) 170 341 100 3.8Yield (ton/ha) /1 4.5 3.1 -31 -1.9Production ('000 ton) 767 1,071 40 1.8

Grapes

Area ('000 ha) 218 300 37 1.7Yield (ton/ha) 3.9 4.0 3 0.2Production ('000 ton) 844 1,202 42 1.9

/1 Yield decreased because expanded area not yet mature.

Source: Computed from data reported in Statistical Yearbook 1975.

Livestock

3.20 Expansion in output of all kinds of livestock products since 1955has contributed to an annual growth rate of 4.3% in total livestock productionalthough breakdown of data showing the value of different livestock productsis not available. Romanian statistics show that total meat production morethan doubled from 1954-56 to 1971-75; egg production increased by 196%, milkincreased 73%, and wool 55%. Pork production rose 154%, substantially morethan other meats.

3.21 Productivity as measured by production per animal on hand at thebeginning of the year has increased for all livestock products. Growth innumbers of cattle has been slow, only about 1.0% a year. But the number usedas draft animals has declined and most cattle now are kept almost exclusivelyfor milk and meat production.

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Table 3.6: CHANGES IN LIVESTOCK PRODUCTION AND NUMBERS

1954-56 1971-75 Changes from 1954-56 to 1971-75Average Average Increase (%) Annual Growth (%)

Production

Milk (mil. hl) 24.5 42.3 73 2.9All meat (thous. tons) 821.5 1,853.0 126 4.4Pork (thous. tons) 344.6 875.3 154 5.0Eggs (millions) 1,570.7 4,644.3 196 5.9Wool (thous. tons) 19.8 30.6 55 2.3

Numbers /1

Cattle (thousands) 4,635.5 5,678.1 22 1.0Hogs (thousands) 4,469.5 8,087.9 81 3.2Poultry (millions) 30.0 62.9 110 4.0Sheep (millions) 10.7 14.1 32 1.5

/1 Numbers on hand at beginning of year.

Source: Statistical yearbook 1975.

Instability of Crop Production

3.22 Romania's weather conditions are variable. Its crop yields andtotal crop production, like other countries with similar climate, fluctuatewidely from one year to the next. One measure of these fluctuations is thedifference between actual yields per ha and total crop production and yieldsper ha and total crop production that would have resulted with a computedstraight-line upward trends based on actual data for 1954-73 (Table 3.7).For example, total crop production was 19.6% above the computed trend line in1955 but 16.8% below in 1956. It was 21.2% above the trend line in 1957 but21.8% below in 1958. Similar wide variations have occurred for wheat, maize,sunflower, sugar beets, and potatoes. Yields of sunflower have fluctuatedless than those of other major crops because it is more resistant to droughts.In most years, high yields for some crops do not offset low yields for othercrops, causing total crop production to vary almost as much as yields of indi-vidual crops. For example, in 1970 yields of all major crops were substantial-ly below computed trend lines while in 1972 all were considerably above.

3.23 Yearly variations in rainfall is the major factor causing cropyields to fluctuate widely. Although there may be sufficient rainfall inJuly and August to obtain fairly high yields in some years, lack of rainfall*often causes low yields and complete crop failure in some areas. Flood damagedue to excessive rainfall such as during late June and early July of 1975,also causes crop production to vary from one year to the next. Land reclama-tion programs to provide better flood protection, irrigation and drainage

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Table 3.7:- PERCENTAGE DIFFERENCES IN CROP YIELDS AND TOTAL CROP PRODUCTIONFROM COMPUTED TREND VALUES, 1954-73

Sugar Total CropYears Wheat Maize Sunflower beets Potatoes Production

Annual Differences

1954 4.1 20.9 6.3 10.9 -3.4 3.31955 12.6 37.2 10.8 10.7 1.9 19.61956 -13.9 -20.5 -12.6 -16.6 5.4 -16.81957 17.7 16.9 -2.2 13.1 16.7 21.21958 12.1 -34.4 -14.7 14.9 3.8 -21.8

1959 12.3 .3 7.0 13.9 6.2 7.71960 6.1 -7.0 5.8 8.0 4.4 -7.41961 1.2 -3.9 2.8 3.8 -. 8 -. 31962 -5.3 -12.1 -5.4 -16.8 -11.9 -11.41963 -10.5 -5.4 -5.2 -26.7 -14.4 -8.1

1964 -16.5 3.5 -6.7 5.9 -12.5 -5.81965 23.0 -12.0 -. 8 -9.2 -25.2 5.11966 -1.3 16.5 13.4 13.3 11.1 12.41967 13.7 -16.2 14.5 6.2 -. 3 7.11968 -5.6 -4.7 3.7 .9 19.0 -2.5

1969 -16.5 1.0 .7 -7.6 -27.7 -7.31970 -26.2 -10.9 -11.2 -15.7 -26.6 -18.01971 9.9 2.5 -2.0 6.4 32.5 7.81972 13.4 21.8 2.0 31.6 26.5 17.81973 6.9 -3.5 -4.5 -15.7 5.1 -7.7

Average Differences /2

1954-63 9.1 15.2 7.3 13.5 6.9 11.8

1964-73 13.3 9.3 4.6 11.3 18.6 9.2

1953-73 11.2 12.2 5.9 12.3 12.3 10.4

/1 Data indicate percentage differences between actual yield or productionand yield or production that would have resulted with a computed straight-line trend.

/2 Averages based on totals of yearly pluses and minuses.

Source: Computed from data reported in Statistical Yearbooks.

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should gradually reduce wide yield fluctuations and raise yields to higherlevels. Total crop production fluctuated relatively less during 1964-73 thanduring 1954-63 suggesting that land reclamation programs under which anadditional 800,000 ha were brought under irrigation during this period havereduced yearly yield variations. However, yield fluctuations are still largewhich indicate that much larger investments for land reclamation (floodcontrol, drainage, and irrigation) and farm inputs will be required to

stabilize and improve crop yields.

3.24 Wide variations in crop yields from one year to the next make itdifficult in some years for Romania to meet domestic fodder requirements andexport targets for agricultural products. Large reserve stocks of grains andother crop products need to be maintained to meet requirements in years when

crop yields are low, or imports increased and exports reduced. Land reclama-tion programs which help stabilize crop yields should be continued to reducethe need for and the cost of maintaining large carry-over stocks. They alsocould reduce the need for feed imports and reductions in livestock productexports and foreign currency receipts. In 1973 and 1974 when crop yieldsdeclined due to below average weather conditions, Romania found that it hadto import feedgrains and protein meals to meet its requirements for livestockfeed and achieve its export targets for livestock products. Romania's pro-grams for expanding exports of livestock and other farm products are handi-capped by widely fluctuating crop yields.

Regional Changes

3.25 Gross agricultural production has increased more in the plainsregion (Zone I) than in the foothills (Zone II) and the mountain and table-land (Zone III) regions in recent years. It was pointed out above (Table2.6) that each region accounts for about one-third of the total agriculturalarea. During the years from 1967 to 1973, gross agricultural production perha of agricultural land was increased 34% in Zone I compared with 17% in ZoneII and only 10% in Zone III. Expansion of the agricultural area of each re-gion increased agricultural production slightly. Gross agricultural productionincreased at an annual rate of 5% in Zone I, 3% in Zone II and only 1.8% inZone III (Table 3.8). As a result of these changes, the share of grossagricultural production accounted for by Zone I has increased from 48% in 1967to 51% in 1973 while the shares of Zones II and III have declined. It shouldbe noted that total crop production was 7.1% above the long-term trend line in1967 and 7.7% below in 1973 (Table 3.7). Therefore, the data cited aboveprobably understate changes in the distribution of agricultural productionamong regions that would have occurred with average weather conditions.

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Table 3.8: GROSS AGRICULTURAL PRODUCTION BY ZONES

Per Ha of Agr. Changes, 1967 to 1973 Distribution of GrossLand ('000 lei) Percent Annual Growth Agr. Production (%)

Zones 1967 1973 Increase Rate (%) 1967 1973

Zone I 5.6 7.5 34 5.0 48 51

Zone II 4.6 5.4 17 3.0 28 27

Zone III 4.2 4.6 10 1.8 24 22

Total/average 4.9 6.1 24 3.6 100 100

Source: Computed from data reported in Statistical Yearbooks showing percentagecompositions of gross value of agricultural production and hectaresof arable land by judets.

Changes by Types of Production Units

3.26 Agricultural production has been increased more by IASs than byCAPs in the last decade. Gross agricultural production of IASs rose 77% andthat of CAPs 35% from 1965 to 1975 (Table 3.9). Although land area in dif-ferent kinds of production units has not changed significantly since 1962,use of fertilizer and other inputs has been increased much more on IASs thanon CAPs. Investments per hectare also have been much larger on IASs than onCAPs. In 1975, 26% of the arable land on IASs was irrigated compared withonly 14% on CAPs. Crop yields per ha average about 30% higher on IASs thanCAPs. Crop yields and gross agricultural production have increased more onlASs than on CAPs because IASs have a larger share of their land in the mostfertile land areas. In 1973, 28% of the arable land in zone I was in IASscompared with only 15% in zone II and 11% in zone III (Table 3.10). Farmmanagement practices have been improved more on IASs than CAPs in the lastdecade. Also, use of fertilizer and other inputs and capital investments forbuildings, mechanization and livestock which help raise output and productivityhave been increased at higher rates on IASs than CAPs and individual farms.It appears that marginal productivity of capital inputs have averaged higheron CAPs than on IASs. In any event, there are opportunities for increasingproductivity of CAPs greatly by expanding the irrigated area and using addi-tional capital inputs.

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Table 3.9: CHANGES IN GROSS PRODUCTION, AREA, FERTILIZER,AND INVESTMENTS OF STATE AGRICULTURAL ENTERPRISES

AND AGRICULTURAL PRODUCER COOPERATIVES, 1965 TO 1975

State Agricultural Enterprises 1965 1970 1975 1975/1965

Gross agricultural production (1960=100) 181 233 320 1.77Agricultural area (thous. ha) 2,077 2,089 2,058 .99Arable area (thous. ha) 1,627 1,664 1,658 1.02Irrigated area (thous. ha) 104 232 432 4.15

Fertilizer consumption (thous. ton) 133 205 252 1.89Total investment (mil. lei) 3,014 4,736 5,429 1.80Yield of wheat and rye (kg/ha) 2,777 1,995 2,548 .92Yield of maize (kg/ha) 2,671 3,341 3,525 1.32

Agricultural Producer Cooperatives

Gross agricultural production (1962=100) 119 119 161 1.35Agricultural area (thous. ha) 8,994 9,033 9,047 1.01Arable area (thous. ha) 7,387 7,274 7,229 .98Irrigated area (thous. ha) 116 431 977 8.42

Fertilizer consumption (thous. ton) 123 379 583 4.77Total investment (mil. lei) 2,811 4,111 4,778 1.70Yield of wheat and rye (kg/ha) 1,818 1,344 2,000 1.10Yield of maize (kg/ha) 1,758 2,024 2,738 1.56

Source: Appendix T 4.2, 4.3, 5.2 and 5.5.

C. Sources of Growth in Output and Productivity

3.27 Growth of agricultural output and productivity in Romania has re-sulted from many measures, including increased use of improved seeds, appli-cations of fertilizer and other chemicals, mechanization of farming opera-tions, research support, training of farm workers and land reclamation to ex-pand the irrigated area, reduce flood damage, improve drainage, and bring ad-ditional land under cultivation. In the case of livestock, the introductionof improved breeds combined with better feeding and health care helped. Thereis need and room for the continuation and expansion of these measures.

3.28 Land in zone I (plains region) where agricultural output has grownmost rapidly, apparently has been more responsive to the application of improvedtechnology than land in Zones II and III. It is not known how fertilizer andother inputs have been distributed among regions, but increases probably havebeen greatest in Zone I. Expansion of irrigated area has been mainly in ZoneI and this probably accounts in large part for the very large increases inagricultural production in this region. The annual growth rate in totalagricultural output of 5% in Zone I from 1967 to 1973 is very impressive,especially when it is considered that weather conditions were less favorable

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weather conditions were less favorable in 1973 than in 1967. The priorityplaced on upgrading technology and making investments to expand agriculturalproduction in Zone I appears to have been a wise policy from the standpoint ofmaximizing agricultural output growth.

3.29 The discussion of sources of growth in agricultural output and pro-ductivity which follows deals with the country as a whole since detailed databy regions are not available.

Table 3.10: PERCENTAGE DISTRIBUTION OF ARABLE LAND BY ZONES, 1973

IASs CAPs Individual Farms Total

Zone I 28.1 70.3 1.6 100.0

Zone II 14.8 79.1 6.1 100.0

Zone III 11.5 77.7 10.8 100.0

All Zones 21.1 74.2 4.7 100.0

Source: Computed from Table 82, Statistical Yearbook of the SocialistRepublic of Romania, 1975.

Research and Education

3.30 Romania's well-developed programs for agricultural research andeducation have made important contributions to higher crop yields and produc-tivity of livestock. 1/ Better quality seeds and breeds of livestock distri-buted by the Academy of Agricultural and Forestry Sciences have helped raiseoutput and productivity levels although there still is much scope for furtherimprovements. The development of improved varieties of sunflower, hybridmaize, and wheat has been especially important in raising crop yields. In-creases in livestock productivity as shown by increased output of milk percow, wool per sheep, eggs per hen and meat per animal unit have resulted frombetter breeds of animals and improved feeding and related practices. Tech-nically trained agriculturalists stationed on IASs and CAPs to supervisefarming operations are given detailed guides to follow in carrying out landpreparation, planting, cultivating and harvesting operations.

1/ See map 11717 for the location and Appendix Table 6.1 for a list of theSubordinate Research Institutes, Central Stations and Research Stationsof the Academy of Agriculture and Forestry Sciences.

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Fertilizer

3.31 Increased use of fertilizer has been an important factor contribut-ing to higher crop yields. Fertilizer consumption increased from only 22,000tons in 1955 to 929,000 tons (plant nutrients) in 1975 or from only 2 kg/haof arable land in 1955 to 95 kg/ha in 1975 (Table 3.11). Limited informationconcerning distribution of fertilizer by crops indicates that about 60% isused for grains, 5% for sugar beets, 5% for sunflower, 3% for potatoes, 3%for vegetables and 24% for other crops. Fertilizer use on grains may have in-creased about 300,000 tons from 1955 to 1975, enough to increase total grainproduction 3 million tons assuming a yield response ratio of 10 kg of grainper kg of plant nutrients. Total grain production averaged about 8 milliontons in 1954-56 compared with 15 million tons in 1971-75. Thus, larger ap-plications of fertilizer appear to account for a large share of the increaseof 7 million tons in total grain production.

Table 3.11: FERTILIZER CONSUMPTTON(thousand tons of active substance)

1955 1960 1970 1971 1972 1973 1974 1975

Nitrogen (N) 10 25 367 431 421 420 480 572Phosphate (P205) 7 47 203 180 173 242 299 314Potash (K20) 5 3 24 22 45 53 35 43

Total 22 75 594 633 639 715 814 929

Quantity per ha ofarable land (kg) 2 8 65 66 66 75 85 95

Source: Statistical Yearbook of the Socialist Republic of Romania, 1975.

Land Reclamation and Irrigation

3.32 Romania has a long experience with building minor flood control anddrainage structures, but large-scale construction of irrigation, and floodcontrol facilities is a recent development. Irrigated area increased fromonly 185,000 ha in 1961 to 1.4 million ha in 1975 or from only 1.9% of thearable area to 15% (Table 3.12). Objectives of irrigation include pre-vention of crop failure or reduced yields in years of low rainfall, increasedyields in years with average rainfall, and increased double-cropping. Mostirrigation projects also involve constructions for preventing flood damageand improving water drainage. Most of the area irrigated is in southern andeastern parts of the country where rainfall averages only 350-500 mm anr,'allyand varies widely from one year to the next.

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Table 3.12: IRRIGATED AREA BY CROPS

Thousand hectares Percentage of Area IrrigatedCrops 1961 1975 1961 1975 /2

Wheat 23.7 210.0 .8 8.8Maize 45.7 428.0 1.3 13.0Sunflower 4.0 56.8 .9 11.1Sugar beets 5.4 55.9 3.1 22.7Potatoes 2.4 15.8 /1 .8 5.3Vegetables 50.4 128.4 27.9 57.6Lucerne and clover - 181.2 - 24.9Pasture and meadows - 25.8 - 0.6Vineyards - 19.2 - 5.9Orchards - 10.6 - 2.5Other crops 53.0 292.8 -

Total 184.6 1,424.2 1.9 14.8 /2

/1 Data for 1972./2 Percent of total arable area excluding minor crops and pastures.

Source: Statistical Yearbook, 1975.

Table 3.13: LABOR FORCE IN AGRICULTURE AND OTHER SECTORS(Thousand workers)

Actual Numbers 1954 1960 1965 1970 1975

Agriculture 6,377 6,233 5,477 4,849 3,837Other 2,770 3,305 4,207 5,026 6,314

Total 9,147 9,538 9,684 9,875 10,150

Changes in Numbers 1954-60 1960-65 1965-70 1970-75

Agriculture -144 -756 -628 -1,012Other 535 902 819 1,288

Total 391 146 191 276

Source: Statistical Yearbook, 1975.

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Table 3.14: NUMBERS OF SELECTED FARM MACHINES

1955 1970 1973 1974 1975

Tractors 23,033 107,290 116,513 116,816 119,533Mechanical cultivators 7,787 29,346 34,594 33,736 34,391Chemical fertilizer spreaders -- 14,504 13,718 12,783 12,251Tractor-drawrn combines 46 43,916 33,222 28,438 20,209Self-propelled combines 1,489 1,325 7,197 12,245 17,912Combines for silage 7,129 9,167 9,130 9,445

Source: Statistical Yearbook, 1975.

3.33 Expansion of irrigated area together with improved flood controland drainage structures have been important sources of increased crop produc-tion. Most studies of crop production increases made possible by irrigation,flood control and drainage facilities together with improved cultural prac-tices show that crop production can be more than doubled over a period ofseveral years. Crop production per hectare has been doubled on the areaplaced under irrigation since 1955. It was equivalent to about 10% of totalcrop production in 1973. Of course, other inputs required to make effectiveuse of irrigated land were also provided, although not all in optimum quantity.

Farm Mechnaization

3.34 One of the most significant developments in Romanian agricultureduring the last two decades is rapid mechanization of many farm operationswiich boosted agricultural production at the same time that labor force inagriculture declined (Table 3.13). Over 2.5 million workers moved fromagriculture to jobs in other sectors.

3.35 Most seed-bed preparation, cultivating and harvesting still werecarried out by animal-drawn implements in 1955, but numbers of farm machineshave increased greatly in recent years (Table 3.14). Almost all field opera-tions for producing crops now are mechanized. However, much hand labor stillis used to produce sugar beets, potatoes, tobacco, fruits and vegetables, sothere still is scope for further mechanization. Romania still has about560,000 horses used mainly for hauling operations, but also for some fieldwork in hilly areas.

3.36 Much land has been released from producing feed for draught animalsfor producing livestock and other agricultural products for human use. AboutI million horses were used for draught purposes in the early 1950s by 3-4million small peasant farmers before the land reform which began in 1945.Many cattle also formerly were used for draught purposes. Therefore, reduc-tion in number of draught animals has been an important source of feed forexpanding dairy, beef, pork and egg production.

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Capital Investments

3.37 Capital investments have played an important role in increasingagricultural output and productivity. Total investments in agriculture in-creased from an annual average of 2.6 billion lei in 1955-59 to 23.2 billionlei in 1976-80 (Table 3.15). Investments for mechanization have been verylarge making possible increased agricultural production with fewer workers.Investments for land reclamation became increasingly important beginning inthe 1960's as total irrigated area rose from 200,000 ha in 1960 to 1.5 mil-lion ha-in 1975. Agriculture's share of total investments in the economyincreased from 15.2% in 1955-59 to almost 19% in 1960-65 but decreased to14.0% in 1971-75'and 11.6% during 1976-80 when total investment increased byabout 50%. Similarly total investment increased by again 50% during 1976-80 compared with 1971-75.

3.38 The ratio of agricultural investment to the gross value of agricul-tural production has risen steadily from only 5.3% in 1955-59 to 17.1% in1971-75. Similarly, the ratio of agricultural investment to national incomefrom agriculture rose from only 8.5% in 1955-59 to 32.7% in 1971-75. However,the ratio of agricultural investment to output of the sector has not risento as high a level as the ratio for other sectors. In the case of the totaleconomy, the ratio of investment to national income (Romanian methodology)was 31.4% in 1973. 1/ The fact that Romania has invested a large share ofits current output for future production has contributed to high economicgrowth rates- in agriculture as well as in other sectors. Investments inagriculture include cer-tain items (e.g. silos, stores, certain buildings)which in certain countries are not so classified. The recent high agricul-tural investments are accounted by major infrastructural projects such asirrigation, greenhouses, etc.

1/ Computed from Tables 2.1 and 2.2, Statistical Appendix of IBRD ReportNo. 492-a-RO, Current Economic Position and Prospects of Romania,Vol. I, October 11, 1974. Not adjusted to the latest data.

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Table 3.15: INVESTMENTS IN AGRICULTURE DURING PLAN PERIODS COMPARED WITHTOTAL INVESTMENTS AND AGRICULTURAL PRODUCTION /1

Annual Averages1955-59 1960-65 1966-70 1971-75 1976-80 /2

Agricultural investments(billion lei) 2.65 7.11 10.31 15.39 23.2

Total investment(billion lei) 17.42 37.89 66.16 109.80 200.0

Agriculture's share oftotal investment (%) 1S.2 18.8 15.6 14.0 11.6

Gross value of agr. prod.(billion lei) 50.0 57.0 71.0 90.0 115-130

National income from agr.(billion lei) 31.0 35.0 40.0 47.0 60-68

Ratio of agriculturalinvestment to:

Gross value of agr.production (%) 5.3 12.5 14.5 17.1 20.0-17.8

National income fromagriculture (%) 8.5 20.3 25.8 32.7 38.3-34.1

/1 Plan periods are as follows: 1955-59, 2nd 5-yr. plan; 1960-65, 6-yr.plan; 1965-70, 3rd 5-yr. plan; and 1971-75, 4th 5-yr. plan. 1971-75averages are based on data for 1971-73.

/2 Mission estimates and 1976-80 Plan Law.

Source: Same as Table 3.3 of this report.

3.39 Romania's rapid economic growth in other sectors as well as inagriculture has been due in large part to rapid capital formation. The shareof national income allocated to development fund increased from 17-18% in1954-60 to 33% in 1971-75, helping to make possible rising rates of growthin output and consumption. Data for plan periods are as follows:

Plan Percent of Net Income Annual Percentage GrowthPeriod Allocated to Development Fund Rate in Consumption Fund

1954-60 17 - 18 4.5

1961-65 25 5.3

1966-70 29 - 30 7.0

1971-75 33 8.0

1976-80 (forecast) 33 - 34 over 8.0

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D. Foreign Trade

3.40 Romania's trade in agricultural products has increased greatly inthe last two decades although less than non-agricultural products, as mightbe expected with the emphasis placed on industrial growth in Romania. Exportsof agricultural products (including forestry) rose from about 700 million leiin 1950 to 6.5 billion lei in 1974 (Table 3.16). Agricultural imports in-creased from 285 million lei to 4.7 billion lei. in 1974. Despite the dec-line in agriculture's share of total exports from 55% in 1950 to 27% in 1974,agriculture's growing trade surplus -- from 412 million lei in 1950 to almost2.2 billion lei in 1973 and 1.8 billion lei in 1974 -- has become increasing-ly important as a source of foreign exchange used mainly for financing im-ports for industrialization. Moreover, an increasing share of the growingtrade surplus for agricultural products has been in convertible currency, adevelopment which also has contributed to industrial growth.

Table 3.16: EXPORTS, IMPORTS AND TRADE BALANCES FORAGRICULTURAL AND OTHER PRODUCTS

(Million Lei)

1950 1960 1965 1970 1973 1974

Agricultural Products /1

Exports 697 1,543 2,338 2,994 5,293 6,504Imports 285 649 832 1,808 3,051 4,725

Balance 412 894 1,506 1,186 2,242 1,779

Total Trade

Exports 1,274 4,302 6,609 11,105 18,576 24,226Imports 1,460 3,887 6,463 11,761 17,418 25,563

Balance -186 415 146 -656 1,158 -1,337

Agriculture's Share

Exports 55 36 35 27 28 27Imports 20 17 13 15 18 18

/1 Includes forestry products and assumes sugar exports in 1973 at 1972value.

Source: External Trade of the Socialist Republic of Romania, 1974 and earliervolumes and Statistical Yearbook, 1975.

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Exports

3.41 Romania exports a wide variety of agricultural products (Table 3.17).Exports of processed foodstuffs have risen much more than raw materials forfoodstuffs and other purposes. Items which show large export-value increasessince 1965 include meat and meat products, sugar, vegetable oils, wine andalcoholic beverages and fresh vegetables and potatoes. The export value ofcereals, live animals and raw materials from forestry also have increasedsubstantially. Exports of processed foodstuffs amounted to over half thetotal value of agricultural exports in 1974 compared with 39% in 1965.

Table 3.17: EXPORTS OF AGRICULTURAL AND FORESTRY PRODUCTS(Million lei) /1

1965 1970 1971 1972 1973 1974 /2

FoodstuffsMeat and meat products 219 271 323 442 762Dairy products 45 56 104 95 89Vegetables and potatoes 62 115 182 210 256Fruits (fresh, dried andprocessed) 177 180 170 179 192Sugar 16 20 6 179 -Vegetable oils 55 206 278 219 298Wine and alcoholic beverages 180 265 316 342 361Others 165 232 419 128 559

Sub-total 920 1,345 1,798 1,794 2,517 3,673

Raw materials for foodsutffsCereals 318 131 240 354 734Live animals 79 245 242 390 372Seeds 26 48 47 56 28Others 87 75 65 282 206

Sub-total 510 499 594 1,082 1,340 1,245

Other Raw MaterialsSawn wood 499 561 611 651 840Wooden cases and plywood 121 121 123 133 139Pulp and paper 52 147 141 144 163Others 236 321 276 258 294

Sub-total 908 1,150 1,151 1,186 1,436 1,586

Grand Total 2,338 2,994 3,543 4,062 5,293 6,504

/1 All trade transactions are carried out at US$1 = Lei 4.97./2 Breakdown of total.s not available.

Source: External Trade of the Socialist Republic of Romania, 1974 and earliervolumes and Statistical Yearbook, 1975.

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3.42 The total value of agricultural exports increased by 12.0% annuallyfrom 1965 to 1974 compared with an annual growth rate in gross agriculturalproduction of 4.4% annually. Thus it appears that an increasing share oftotal agricultural output has been exported. However, some of the rise inthe total value of exports has been due to rising export prices and to thegrowing share of processed products. The ratio of the total value of agri-cultural exports to the gross value of agricultural production increased from3% in 1965 to about 7% in 1974, indicating that exports of agricultural pro-ducts have increased proportionately more than domestic consumption. Theshift in composition of agricultural exports to include a larger share of pro-cessed foodstuffs has been encouraged by their rising export prices comparedwith those of raw materials.

3.43 Major changes in agricultural exports measured in quantitative termsinclude the following:

1965 1974('000 tons)

Meat and meat products 61 132Edible animal fats 19 52Edible vegetable oils 33 165Tinned vegetables 11 61Fresh vegetables 137 185Wines 43 90Other'alcoholic beverages 9 17Refined sugar 34 107

3.44 Cereal exports have not changed significantly, fluctuating aroundan annual average of about 700,000 tons since 1960 (Appendix Table 1.8).Romania has utilized its increased grain production mainly for expandingoutput of animal products. (Appendix table 1.8 gives additional details onexports by year since 1960 and substantiates that expansion of domestic feedrequirements have been given priority (para. 3.47)).

3.45 Romania has traded more with West European and North American coun-tries in recent years. The share of agricultural exports going to non-CMEA(Council for Mutual Economic Assistance) countries increased from only 35% in1960 and 40% in 1965 to 74% in 1973. Thus, convertible foreign exchangeearnings have gone up greatly. The expansion of large-scale factory-type farmunits for producing meat products, vegetables and other agricultural productshave been concerned with increasing export earnings.

Imports

3.46 Agricultural imports consist mainly of raw cotton, crude leather,citrus fruits, cocoa and other products not produced in the country in suffi-cient quantities (Table 3.18). Much of the growth in the total value ofagricultural imports since 1965 has been due to higher import prices. Never-theless, agricultural imports as a share of total imports declined from 20%in 1950 to 18% during 1974. Growth of agricultural imports has been mainlyfrom non-CMEA countries. Agricultural imports from non-CMFA countries ac-counted for 82% of the total from all countries in 1973 compared with about46% in 1965.

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Table 3.18: IMPORTS OF AGRICULTURAL AND FORESTRY PRODUCTS(Million lei)

1965 1970 1971 1972 1973 1974 /1

Foodstuffs

Meat and meat products - 27 137 120 25Fish and fish products 39 77 69 63 51Citrus fruits 15 23 36 46 54Sugar - 90 119 76 74Alcoholic beverages 21 21 34 48 63Others 80 119 64 42 133 _

Sub-total 155 358 461 395 400 587

Others

Fodder (feeds) 35 68 79 157 467Live animals -1 16 5 9 41Raw cotton 302 388 434 480 529Wool 26 34' 34 39 97Crude leather 61 152 115 217 290Cocoa 18 25 27 25 54Tobacco 9 13 29 14 14Pulp and paper 35 95 126 159 180Others 190 659 685 690 978

Sub-total 677 1,450 1,534 1,790 2,650 4,138

Grand Total 832 1,808 1,905 2,185 3,051 4.725

/1 Break down for each item not available.

Source: External Trade of the Socialist Republic of Romania, 1974 and Statis-tical Yearbook, 1975.

3.47 Romania increased its imports of fodder (feedgrains and proteinmeals) greatly in 1973, and they also were large in 1974. Romanian authori-ties stated that large feed imports were necessary to meet production and ex-port targets of livestock products when feed grain production was lower thanplanned. One source states that Romania's imports of feed grain increased to600,000 tons for the year beginning July 1, 1973, and to 1 million for theyear beginning July 1, 1974 compared with 300,000 tons for the year beginningJuly 1, 1972. 1/ However, except 1974-75, Romania has been a net exporter ofgrains of about 500,000 tons annually in recent years.

1/ The Agricultural Situation in Eastern Europe, Table 6, U.S. Departmentof Agriculture, March 1976 and Foreign Agricultural Service, RM 6006July 19, 1976 - USDA.

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Policies and Programs

3.48 Romania has made a determined effort to expand agricultural ex-ports. It established enterprises for this purpose: Romagrimex, Frutexport,Prodexport, Agro-Export, and wine export as described in para. 2.31. Theseagencies make contracts with farm production and processing units for thedelivery of agricultural products at specified prices which they export.The Foreign Trade Bank provides funds for export operations. Foreign tradeoperations also have been assisted by an Equalization Fund operated by theMinistry of Foreign Trade and International Economic Cooperation. In thecase of most agricultural exports, financial profits are realized becauseexport values exceed costs of acquiring, processing, packaging and shipping.However, export enterprises have received payments from the EqualizationFund in years when export values do not cover costs. Export Enterprisesalso handle agricultural products for export by charging marketing enter-prises a commission to cover the costs of agricultural production and pro-cessing enterprises. In this case, production and processing enterprisesreceive prices in export markets less commission charges. Priority has beenplaced on modernizing marketing facilities of enterprises that produce forexport, and their facilities are better than those that handle products indomestic market.

IV. DEVELOPMENT PLANS, PROSPECTS AND POLICIES

A. Plan Objectives

4.01 The Five-Year Plan for 1976-80 was adopted by Law of July 1976 bythe General Assembly. Its first draft was approved by decree no. 94 in June1975 and published as "Directives". It provided fairly firm outlines of finaltargets. 1/ The approved plan provides for gross agricultural production toincrease by 28-44% (3.8 to 6.2% annually) over that of the previous plan.Actual gross agricultural production averaged 25% larger in 1955-59 than in1950-54 and 15% larger in 1960-65 than in 1955-59. However, it increased byabout 25% from one plan period to the next during the last two plan periods(Table 4.1). Therefore, an increase of 28% in 1976-80 over 1971-75 would beclose to the actual achievement of the last plan (1971-75). But an increaseof 44% would require greatly accelerated growth of agricultural productioncompared with any of the earlier plan periods.

1/ Directives of the Eleventh Congress of Romanian Communist Party Concern-ing the 1976-80 Five-Year Plan and Guidelines for Romania's Economic andSocial Development over the 1981-90 period, Meridiane Publishing House,Bucharest, 1975.

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Table 441: GROSS AGRICULTURAL PRODUCTION: PERIOD AVERAGESAND PERCENTAGE CHANGES FROM PREVIOUS PERIOD

Annual Percentage

Averages A changes fromPeriods 1950=100 previous period

1950-54 (1st 5-year plan) 122.5 --

1955-59 (2nd 5-year plan) 153.0 24.91960-65 (3rd 6-year plan) 176.3 15.21966-70 (4th 5-year plan) 219.2 24.31971-75 (5th 5-year plan target) 269.2 36-491971-75 (actual) 275.3 /2 25.41976-80 (6th 5-year plan) /3 334-369 28-44

/1 Actual averages except plan averages for 1971-75 and 1976-80./2 For 1971-74./3 Law for adoption of 1976-80 Plan (approved July 4, 1976).

Source: Statistical Yearbook, 1975.

4.02 Gross agricultural production increased at an annual rate of 2.0%during 1955-65 and 4.4% during 1965-75 as explained above (para. 3.06). Thusthe lower limit of the planned annual increase in gross agricultural produc-tion of 3.4% is less than the rate achieved during the last decade but theupper limit of 6.0% annually exceeds growth rates ever achieved in the past.

4.03 Targets have been set for livestock numbers and individual productswith lower and upper limits. By end of 1980 the number of livestock is plan-ned to reach 7.5 million heads for cattle, 12 to 13 million for swine, 19to 19.5 million for sheep and goats and around 55 million for egglaying poul-try. Production targets for various products call for increases from 1971-75to 1976-80 of 35-51% for cereals, 32-49% for sunflower, over 50% for mostother major crops, 41-52% for alL meats, and 37-47% for milk. These targetsmay be compared with production in 1980, assuming continuation of annualgrowth rates from 1954-55 to 1971-75. Production of sunflower and eggswould exceed targets set for 1976-80, but growth rates for other productswould need to exceed those during the last two decades to achieve targets.But it should be noted that production of most agricultural commodities hasgrown more rapidly during the last decade than during the previous one.Continuation of growth rates experienced during 1965-75 would mean achieve-ment of the lower 1976-80 plan targets for most agricultural products.

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Table 4.2: PRODUCTION TARGETS FOR MAJOR AGRICULTURAL PRODUCTS 1976-80

1976-80 1976-80Annual Compared to Actual

Products Average 1971-75 (%) 1971-1975

Cereals ('000 tons) 20,000-22,360 135-151 14,804Sunflower ('000 tons) 1,000- 1,133 132-149 760Sugar beets ('000 tons) 8,600- 9,354 181-197 4,757Soybeans ('000 tons) 545- 575 246-260 221.0 /1Flax for fibre ('000 tons) 300- 322 324-348 92.5Potatoes ('000 tons) 43600- 4,800 157-166 2,927Field vegetables ('000 tons) 4,200- 4,360 165-169 2,549Fruit and grapes ('000 tons) 3,800- 4,000 166-173 2,100Meat ('000 tons l.w.) 2,500- 2,687 135-145 1,853Milk (mil hl.) 58- 62 137-147 42Eggs (millions) 6,000- 6,500 /1 129-140 4,640Wool ('000 tons) 42- 47 138-153 31

/1 Flax average is low due to 1975 floods.

Source: 1976-80 Plan Law as published in press on July 3, 1976. Actual pro-duction of potatoes, vegetables and fruits, as in Appendix Tables is slightlydifferent.

4.04 The 1976-80 plan calls for yields per ha and livestock productionper animal unit to increase greatly. Yields of major crops, for example,according to Directives are expected to average 30-78% higher than thoseduring 1971-75 (Table 4.3).. Fertilizer use (active substance) is projected torise to 280 kg per ha of arable land, vineyards, and orchards in 1980 comparedwith 95 kg in 1975. Approximately 1.2 million ha of additional land will bebrought under irrigation, bringing the total close to 3.0 million ha in 1980.Drainage will be improved on 1.1 million ha, erosion control measures will becarried out on about 1 million ha, and the arable area will be increasedby 125,000 ha during 1976-80.

Table 4.3: TARGET YIELDS FOR 1976-80 COMPARED WITH 1971-75 AVERAGES(kg/ha)

Average Target Percentage1971-75 1976-80 Increases

Wheat and rye 2,210 3,000- 3,150 36-43Maize 2,680 3,500- 3,800 31-42Sunflower 1,450 2,000- 2.140 38-48Sugar beets 22,140 34,000-36,000 54-63Field vegetables 11,250 19,000-20,000 69-78

Source: Directives of the Eleventh Congree of Romanian Communist PartyConcerning the 1976-80 Five-Year Plan and Guidelines for Romania'sEconomic and Social Development over the 1981-90 period, MeridianePublishing House, Bucharest, 1975.

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4.05 Planned investment in agriculture during 1976-80 will total 116billion lei (15.1 billion for loans to CAPs and about 21.5 billion out of CAPsown funds), an amount equivalent to 11.6% of planned investments of 1,000 bil-lion lei for all purposes. Planned annual investment in agriculture will in-crease to an annual average of 23.2 billion lei in 1976-80 compared with 15.4billion in 1971-75 and 10.3 billion in 1966-70. However, agriculture's shareof total investment will decline from 15.6% in 1966-70 and 14% in 1971-75 to11.6% in 1976-80.

4.06 Investment plans for 1976-80 put greater emphasis on improving pro-ductivity of CAPs and SAMs than in previous plan periods. This policy shifttowards CAPs which account for 75% of the arable land, is a step in theright direction for realizing relatively higher plan targets. Available dataindicate that investments for CAPs will be 64% higher and those for SAMs 74%higher in 1976-80 than in 1971-75 (Table 4.4, Section A). On the other hand,investments for IASs, which have been relatively large in recent years, willbe reduced. It also shows that investments for land reclamation, mechaniza-tion, and vegetable production will be increased greatly and those for animalproduction will be increased slightly in 1976-80 compared with 1971-75.Number of tractors of various types are expected to increase in 1975 by 70,000Tractors some for replacement and some for additional operations.

4.07 The most important projected change in agriculture is a large im-provement in labor productivity resulting from capital-labor substitution.Labor force in agriculture is expected to decline to about 3 million in 1980,compared with 4.0 million in 1975, and account for only 27-28% of the totalemployed in 1980 compared with 38% in 1975. About 700,000 (according to mis-sion estimates) of the 1 million non-agricultural jobs to be created during1976-80 will be filled by workers leaving agriculture. If the number ofagricultural workers declines by 25% from 1975 to 1980 as planned and grossproduction increases by 30%, gross production per agricultural worker wouldincrease 73%. The 1976-80 Plan envisages that real incomes of all workerswould average 18-22% higher in 1980 than in 1975. Real incomes per worker onCAPs and private farms would rise by 20-29%.

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Table 4.4: INVESTMENTS IN AGRICULTURE /1

A. Distribution by Types of Enterprises

Annual Averages in Billion Lei1960 1961-65 1966-70 1971-75 1976-80

Agricultural ProductionCooperatives, total 1.5 3.0 3.6 4.5 7.4Own funds 1.0 2.2 2.4 2.0 4.3Loans .5 .8 1.2 2.5 3.1

Stations for AgriculturalMechanization (State Budget) 1.5 1.4 1.4 2.3 4.0

State Agricultural Enterprises,Total 1.5 2.5 3.7 4.6 3.7State Budget 1.0 2.0 3.2 4.1 3.2Retained Profits .5 .5 .5 .5 .5

Sub-total 4.5 6.9 8.7 11.4 15.1

Other .4 .4 1.6 3.9 8.1

Grand Total 4.9 7.3 10.3 15.3 23.2

B. Distribution by Subsectors

Annual Averages in Billion Lei (%)1971-75 1976-80

Land Reclamation 4.6 (30.7) 7.8 (33.6)Mechanization 3.4 (22.7) 6.5 (28.0)Vegetable production 1.5 (10.0) 3.2 (13.8)Animal production 4.4 (29.3) 4.9 (21.1)Other 1.1 ( 7.3) .8 ( 3.5)

Total /2 15.0 (100.0) 23.2 (100.0)

/1 The capital needed for production is provided partly by own funds andpartly by short-term loans. As of end 1975, for example, the total re-quirements of 31.6 billion lei of the IASs, SAMs, CAPs, and ICAs wererespectively financed by 65, 40, 45 and 32 percent from own funds andthe balance from BAFI loans.

/2 Totals exclude investments for silos and farm storage, and other build-ing facilities.

Source: Data supplied by Romanian authorities to 1975 mission for Section A.

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4.08 The "Directives" also include guidelines for economic and socialdevelopment until 1990, calling for intensive development of agriculture.Gross agricultural production in 1986-90 is projected to average 50-80% largerthan in 1971-75, with livestock products accounting for 50% of the total in1986-90 compared with 40% in 1971-75. Total irrigated area will increase to5 million ha in 1990 (about half of all arable land) and fertilizer use to300-325 kg per ha (active substance). Cereal production is projected torise to 28-30 million tons, averaging more than one ton per person. Yieldsper ha are expected to rise greatly over those of recent years (Table 4.5).

Table 4.5: TARGET YIELDS FOR 1990 COMPARED WITH 1971-75 AVERAGES(kg/ha)

1971-75 1990 PercentageAverages Averages increase

Wheat and rye 2,210 3,700 67Maize 2,680 5,300- 5,800 98-116Sunflower 1,450 2,300- 2,400 59- 66Sugar beets 22,140 42,000-45,000 90-103Flax for fibre 1,886 5,800- 6,000 207-218Field vegetables 11,250 23,000-24,000 104-113

Source: Same as for Table 4.3.

4.09 Livestock numbers and production per animal unit are projected toincrease greatly. For example, number of pigs on hand at end of the year isexpected to increase 36-48% by 1980 and 105-127% by 1990 over the number in1975 (Table 4.6). Large increases also are expected for cattle, sheep andgoats and poultry. Livestock will be fed to heavier weights, thereby in-creasing meat production. Productivity per animal unit as measured by milkper cow, eggs per hen, and wool per sheep will approximately double from re-cent levels. In 1990, milk production per cow is expected to average 3,200-3,400 litre annually, wool production per sheep 4.5-4.7 kg, and eggs per lay-ing hen 200-240.

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Table 4.6: TARGET INCREASES IN LIVESTOCK NUMBERS(Millions)

1975 1980 1990 % Increase from 1971-75Actual Target Target 1980 1990

Cattle 6.0 7.5 10-11 25 66- 83Pigs 8.6 12-13 18-20 40-50 105-127Sheep and goats 14.4 19-19.5 20-22 32-36 40- 54

Source: Same as Table 4.5.

4.10 Romania also sets annual plan targets for crop and livestock pro-duction based on estimates by management staffs of production units and ofgovernment authorities at judet and national levels on how much productioncan be increased under expected conditions regarding input supplies, invest-ment credit, and use of improved technology. National plan targets for 1976call for large increases in production over 1974 and 1975 (Table 4.7). Forexample, achievement of plan targets would require production increases in1976 over 1975 of 35% for all cereals, 47% for sugarbeets, and 57% for sun-flower. They would require increases of 21% for all meat, 18% for eggs, 14%for milk, and 17% for wool from 1974 to 1976. Increased use of improvedseeds, fertilizer, and other inputs together with improvement of crops andlivestock husbandry practices, expansion in the irrigated area, and increasedrmechanization are expected to be major source of the larger production. An-nual and plan targets are purposely set at maximum - difficult to reach -levels to encourage increased production.

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Table 4.7: 1976 TARGETS AND ACTUAL PRODUCTIONIN 1974 AND 1975 COMPARED (Million Tons)

Actual 1976 % Increase1974 1975 Targets 1974 to 1976 1975 to 1976

Cereals, total 13.6 15.3 20.6 51 35Wheat 5.0 4.9 7.2 44 47Maize 7.4 9.2 11.9 61 29Sugarbeets 4.9 4.9 7.2 47 47Potatoes- Autumn 3.6 2.7 4.7 31 74Vegetables 3.0 2.5 3.9 30 56Sunflower .7 .7 1.1 57 57Meat, liveweight 1.9 2.0 2.3 21 15Milk /1 43.5 41.0 49.5 14 21Wool /2 30.9 31.5 36.1 17 15Eggs /3 4.9 5.4 5.8 18 7

/1 Million litres./2 '000 tons.3 Millions.

Source: Law of 1976-80 Plan and the Statistical Yearbook, 1975.

B. Potentials and Prospects

4.11 Romania has great potential for expanding agricultural production.It should be able to achieve a 28% increase in gross agricultural productionin 1976-80 over 1971-75 as called for by the lower target of the Five YearPlan if average weather conditions prevail. If Romania is able to fulfillplan stipulations for irrigating an additional 1.2 million hectares and putinto effect farming practices required to achieve higher yields on this area,it should be able to move gross agricultural production closer to the uppertargets.

Crops

4.12 There are possibilities for raising crop yields by increased useof improved seeds, fertilizer, and herbicides to control weeds and by betterpreparation of seedbeds, cultivation and harvesting practices. It was re-ported that only enough herbicides were available in 1974 to control weedson wheat planted on IASs. Expansion in supplies of these inputs planned for1976-80 should help raise crops yields throughout the country. There un-doubtedly are large potentials for raising crop yields by more effective con-trol of weeds and more timely performance of field operations. The plannedexpansion in numbers of farm machines on SAMs should improve field operationsand contribute to higher yields on CAPs.

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4.13 Crop yields generally average 25-60% higher on IASs than on CAPs(Table 4.8). The higher yields are due in large part to the use of betterseeds, more fertilizer and other chemicals and better performance of fieldoperations. Also, a larger share of the land is irrigated on IASs than onnCAPs. However, Romania plans to upgrade farming practices on the CAPs andput more land on CAPs under irrigation. It should be possible to increasecrop yields 25-50% on CAPs which operate about 75% of the arable land byfollowing agronomic practices similar to those now used on IASs.

Table 4.8: CROP YIELDS AND FERTILIZER USE BY TYPES OF FARMS,1971-75 AVERAGES

(kg/ha)

Crop Yields IASs CAPs IAS/CAPs

Wheat and rye 2,873 2,115 136Maize 3,384 2,672 127Sunflower 1,747 1,378 127Sugar beets 20,934 22,159 94Potatoes 18,335 11,509 159Lucerne 6,190 3,851 161

Fertilizer

Arable land /1 131 71 185

/1 Kg of active substance per ha.

Source: Statistical Yearbook, 1975.

4.14 Comparison of crop yields in Romania with those in nearby countriesalso suggests that there are large potentials for increasing yields. Croppyields are lower in Romania than in other European countries (Table 4.9).Differences in soil fertility and climatic conditions undoubtedly account forsome of the differences. But lower crop yields in Romania may be due inlarge part to lower applications of fertilizer, poorer seeds and less effec-tive weed control. Fertilizer use averages less than half as large per ha ofarable land as in nearby countries. Romania's plans to increase fertilizeruse from an average of 95 kg (active substance) in 1975 to 280 kg in 1980per ha of arable land, vineyards and orchards should do much to increaseyields provided better seeds and other improved cultural practices also arefollowed. Experimental trials made by research stations of the Academy ofAgriculture and Forestry Sciences indicate that crop yields can be increasedgreatly by applying more fertilizers (Appendix Table 5.6). It will be espe-cially important to utilize improved practices on land brought under irriga-tion in order to make investments for land reclamation pay off. It was ob-served that some crops now under irrigation were being damaged by plant dis-eases and insects, so there may be much scope for increasing yields on landalready under irrigation by upgrading cultural practices.

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Table 4.9: CROP YIELDS AND FERTILIZER USE IN EAST EUROPEAN COUNTRIES(kg/ha)

Crop Yields (1971-73 Average) Fertilip¶rCountries Wheat Maize Sugar Beets Potatoes Use -

Romania 2,220 2,681 23,096 12,008 65Bulgaria 3,457 4,137 35,556 13,282 156Czechoslovakia 3,554 4,229 34,090 14,953 272East Germany 4,017 2,835 28,701 17,386 388Hungary 3,218 3,840 31,576 10,628 196Poland 2,708 2,977 31,020 17,520 205

/1 Active substance per ha of arable land in 1972.

Source: FAO Yearbook of Agricultural Production, 1974. Romanian data inAppendix Table 2.4 is slightly different due to conversion ofweights.

4.15 Currently, Romania's seed industry has facilities for growing,cleaning, grading, drying and storing only about 200,000 tons of the 600,000tons of the seeds it uses annually to grow wheat, maize, barley, sunflower,soybeans, and other field crops. It especially needs to expand seed dryingcapacity. The provision of improved seed handling facilities would enableRomania to increase yields of cereals and oilseeds 10-20% from new superiorvarieties developed by the Academy of Agricultural and Forestry Sciences andmake possible savings of seed by reducing present high-seeding rates. Becausegermination rates are uncertain, seeding rates for cereals are high, causingplant population to be too dense and lodging to take place in fields wherehigh germination rates occur. Additional seed handling facilities are espe-cially needed to bring into use new monogram sugar beet hybrids which havepotentials for raising yields by about 18%. Romania also needs better seedhandling facilities for expanding its exports of superior hyrid sunflower seedto the United States and hybrid corn and other seeds to European countries.

4.16 It should be emphasized that realization of the increases in cropyields described above will require improvement in cultural practices andlarge increases in inputs (para. 4.12). Most experimental trials showingpotentials for increasing crop yields are made under ideal conditions withregard to moisture and may overstate yield possibilities under field condi-tions. Nevertheless, prospects for continuation of yield increases atrates achieved in the last decade appear good because of plans to expand theirrigated area and increase the use of improved seeds, fertilizer, and otherinputs.

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Pasture

4.17 Romania can expand beef, sheep, and milk production from its 4.5million ha of native pasture and meadow land. Approximately 2 million ha ofstate-owned land, located mainly between the arable low plains of Zone I andthe forested areas of Zones II and III, could profitably be improved byclearing encroaching shrubs and trees, building access roads and stock waterfacilities, fencing, seeding and fertilizing. Controlled grazing practices toprevent overstocking and to improve vegetative growth will be required tomaximize livestock production. Pasture and meadow lands could be used toraise more cattle and lambs for fattening by specialized feeding enterprisesand thereby save grain by substituting roughage feeds for livestock produc-tion; its value is being increasingly appreciated through gradual increase ininvestments.

4.18 Larger investments for pasture-livestock development could yieldrelatively high returns. A pasture development program was begun in 1972involving expenditure of 300-400 million lei annually for various pasture im-provements. In 1975 the amount was increased to 1.2 billion lei, sufficientto carry out minor improvements on 400,000 ha. Financing is provided besidesstate budget in large part by grazing fees of 30 lei per year for bovines and10 lei per sheep and charges made for cutting pastures for hay. Unimprovedpastures produce about 5,000 kg of green forage per ha, but improved pasturesproduce three times as much. It is estimated that costs of improving nativepasture in mountain areas require investments of 7,000 to 8,000 lei per ha.Annual operating costs would be additional.

4.19 Little arable land is used for perennial hays and almost none forpasture in crop rotations. In 1971-75, roughage feed (fodder) crops accountedfor 16% of the arable area, but only half was in perennial hay and almost nonein rotation pasture. Agronomists believe that sotnd crop rotations involvingmore perennials such as lucerne and clovers for hay and pasture are requiredto conserve soil structure and fertility, control insects and diseases andraise the protein content of roughage feeds. Field experiments also show thatyields of maize, sunflower and wheat increase substantially when these cropsare grown on land following perennial crops. About half of the 1.6 million hain fodder crops are annuals for hay, green feed, silage and root crops har-vested for barn feeding. Much labor and capital costs could be saved by per-mitting livestock to harvest a larger share of their feed from perennial pas-tures instead of relying so heavily on harvesting roughage feed crops forbarn feeding.

Livestock

4.20 Achievement of the high targets set for livestock products dependsupon expansion in total feed production and increased efficiency in the useof feed. Roughage as well as feed grain production will need to average 45-50% larger during 1976-80 than during 1971-75. It should be noted that adoubling of the area used to grow hay, green feed, silage and root cropsduring the first two decades was made possible by reducing the area of cerealsfor grain. Further reduction of the area in grain and expansion in the areaof fodder crops probably will be necessary to produce the roughage requiredto achieve targets set for milk and beef production.

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4.21 Despite much progress in recent years, there still is much scopefor upgrading the genetic quality of livestock breeds and for improving live-stock-feed conversion ratios. The upward trends in product output per animalunit noted above (para. 3.21) can be expected to continue. However, shortagesof grain concentrates, particularly high-protein meal, will probably be an

important constraint to achieving better-balanced feeding rations and improv-ing livestock-feed conversion ratios. Feedgrain shortages also may be animportant constraint to achievement of the high production targets for live-stock products.

4.22 Romania is planning to establish many more large-scale factory-typelivestock enterprises for producing pork, beef, dairy products, poultry andeggs, based mainly on purchased feed. Supplies of feed to private farmers andto members of CAPs will be increased, according to Romanian authorities, eventhough the number of large-scale livestock enterprises increases. As pointedout above (Table 2.9), private farms and members of CAPs accounted for 46% ofthe meat, 57% of the milk, 43% of the wool, and 62% of the eggs produced in1975. It is expected that total livestock production by individual farmersand CAP members will be maintained and perhaps increased, but large-scaleunits will account for an increasing share of national production. Factory-type livestock enterprises make more efficient use of feed than small-scaleproduction by private farmers and members of CAPs. But the latter probablyutilize much poor quality feed which otherwise would be wasted.

4.23 Prospects for achieving large increase in livestock production aregood, but the targets, calling for doubling the number of cattle and pigsfrom 1971-75 to 1990 may be difficult to achieve. They will require much morerapid increases in feed production and improvements of feed-conversion ratiosthan have occurred during the last two decades.

C. Review of Selected Issues

Recent Failure of Net Income to Rise

4.24 The decline in net agricultural income since 1972 is less real thanapparent. Both gross agricultural product and net agricultural income werehigher during each of the 1971-75 plan years than any of the quinquennialyears since 1950 (Appendix Table 1.3). While gross output steadily improved,the net income did not reach the 1972 level despite increased inputs due tounfavorable weather during 1973 and 1974 and excessive rains and floods dur-ing 1975. The overall improvement in productivity and incomes was achievedmainly through increased use of fertilizers (Appendix Table 5.2), farmmachinery (Appendix Table 5.1), improved supplies of feed (Table 3.18) andexpansion in irrigated areas from 600,000 ha in 1970 to 1.5 million in 1975.Additional capital investments would be required in agriculture to furtherexpand output, particularly in view of the declining labor force, and to raiseproductivity levels of farm workers.

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4.25 National income from agriculture increased almost as rapidly asgross agricultural production during the last two decades when total agricul-tural production almost doubled and farm labor force declined by 40%. It is aremarkable achievement (see Tables 3.3 and 3.13). The 1976-80 Plan provides asimilar increase in agricultural income, but due to large material inputs(especially fertilizer, fuel, irrigation equipment) needed to expand output,the national income from agriculture would rise less rapidly than gross agri-cultural production in the years ahead. In most countries where labor produc-tivity in agriculture has been increased greatly, large increases in materialsexpenditures (operating capital) as well as long-term capital investments havebeen required. Material expenditures for farm machinery, fuel, fertilizer,pesticides and other inputs have accounted for rising share of the total valueof agricultural output in countries where average productivity of farm workershas risen greatly. This is likely to be true for Romania in the years ahead.

Improved Technology and Land Reclamation

4.26 Romania undoubtedly has exploitable potential for expanding agricul-tural production at relatively low costs by applying improved technology asdemonstrated at experimental farms. This would require the use of additionalmaterial inputs including better seeds, fertilizer and other chemicals, andadditional mechanization to make possible more timely field operations. Theexploitation of this potential will require capital investments in irrigation,drainage and flood control. Romania needs to exploit all economic potentialsfor expanding agricultural output if it is to achieve its production targets.Adoption of improved technology should move ahead as rapidly as possible, butinvestments for land reclamation also can yield high economic returns, espe-cially if combined with the adoption of improved technology. Other reasonsfor moving ahead with land reclamation projects are stated in para 3.24. Anadded advantage would be to make Romania less vulnerable to world pricefluctuations.

Allocation of Capital Investments

4.27 Romania's plans to increase total investment in agriculture from77 billion lei in 1971-75 to about 116 billion lei in 1976-80 would not besufficient to take advantage of all economic opportunities to upgrade andexpand agricultural output and marketing capacities. Agriculture's relativeshare of total investment would decline (para. 4.05). About one-third of thetotal will be for land reclamation projects including flood control, drainage,and irrigation structures which will benefit other sectors in addition toproviding the basis for expanding agricultural output and reducing crop yieldvariations. This priority is correct. Planned irrigation projects are mainlyin southern and eastern parts of Zone I (the plains region) where agriculturalproduction has increased most rapidly in recent years and where potentials forfuture increases are greatest.

4.28 High priority also should be placed on improving agro-industries(processing, distribution and storage facilities for farm products and inputs),

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farm rmechanization services (especially to CAPs), and pasture development(para 4.17) to expand livestock production. Romanian authorities stated thatlarge increases are planned for farm mechanization and agro-industries (Table4.4). There is much scope for upgrading and expanding agro-industries andfarTm mechanization services and for making investments in other regions inaddition to the southern and eastern parts of Zone I and thereby achievebalanced regional growth in the agricultural sector. Investments for farmmechanization would need to be increased if agriculture is to continue toexpand output with a declining labor force and be a source of workers forother sectors. The 1976-80 Plan provides for the supplement and replacementof farm machinery.

4.29 The Five-Year Plan for 1976-80 wisely recognizes the need for up-grading farming practices, increasing land and labor productivity and improv-ing incomes of workers on CAPs. The large increases in investments plannedfor SAMs should help achieve more timely performance of field work, improvecrop yields, and make possible the release of many workers from CAPs for em-ployment in other sectors. To increase crop yields, CAPs and individual farmsneed much more fertilizer, herbicides, and pesticides for which 1976-80 Planhas correctly made investment allocations.

Fertilizer Policies

4.30 Despite greatly increased production of nitrogen and phosphates,fertilizer consumption in Romania has not increased to levels as high asthose in other European countries because part of the additional produc-tion has been exported. In 1972, for example, Romania exported about halfof the nitrogen and 45% of the phosphates it produced (Appendix Table 5.3).Consequently, fertilizer applications averaged only 95 kg per ha of arableland in 1975 instead of 190 kg which would have been possible if there hadbeen no exports. But this might have reduced total foreign exchange earnings.Large fertilizer applications may not have meant much higher crop yieldsunless they were accompanied by other yield improvement practices such asweed, insect, and disease control. Consequently, economic analysis of the"trade off" may have indicated that it was wise policy to export half of thefertilizer produced, especially in view of recent high world market prices forfertilizer. Agronomists generally recommend on the basis of experimentalfertilizer-yield response trials that fertilizer applications be doubled ortripled from recent levels. Plans to increase fertilizer consumption to 280kg per ha in 1975-80 and to 300-325 kg per ha by 1990 may be sound, but closeattention should be given to the effect of larger fertilizer applications oncrop yields under field conditions as well as to their economics. Fertilizerproduction facilities are being expanded for niitrogen and phosphate so Romaniashould have ample supplies for domestic use but potash supplies will need tobe imported.

Livestock and Pasture Development

4.31 Expansion in the number of ICAs for large-scale factory-type live-stock production is a significant development. They will rely upon feed sup-plies from participating CAPs. Unless feed production is increased greatly,

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CAPs and members of CAPs which now account for a large share of to;--al li've-stock output may be faced with declining feed supplies and may have to reducetheir own livestock production. ICAs probably are hl.igly efficient in con-verting feed to livestock products, but they are highly capital-intensive.Small-scale livestock units of CAP members probably utilize large quantitiesof feed materials that otherwise would be wasted. Therefore, questions wouldneed to be examined concerning how rapidly ICAs should be expanded to replacelivestock production by CAPs and members of CAPs. Romania has found it neces-sary to increase imports of feed grains and protein mcal in the last few yearsto supply sufficient feed for its livestock industry. Feed imports have beenrequired to expand livestock product exports. Import of concentrate feeds toproduce livestock proucts for exports is a profitable policy depending uponprices of feed imports and livestock product exports. It also shotuld be notedthat much of the decline in farm labor force expected during the next decadewill result from the transfer of members of families now working on CAPs toemployment in other sectors. Consequently, a gradual shift to larger scalelivestock units may be necessarv to expand output of livestock products overthe long term.

4.32 Romania's livestock industry has becorme increasingly dependent uponlarger supplies of concentrate feeds during the last two decades due to muchlarger increases in production of swine and poultry than in mlilk and beefcattle and sheep which consume mainly roughage feeds. Consideration current-ly is being given to the benefits of devoting more land to roughage feedcrops and rotation pasture and to improving native pasture and meadow land toexpand output of roughage consuming animals. Use of more cropland for peren-nials to grow roughage feed crops and rotation pasture will help maximizetotal feed and livestock output. More perennials in crop rotations also wouldimprove soil fertility and structure and make possible higher vields of annualcrops.

Other Issues and Questions

4.33 It was estimated that economic losses from the 1975 flood totaledUS$793 million almost equally divided between production and asset losses,with production loss representing 2.4% of national. income and asset loss 6.2%of gross domestic investment in 1974 (see IBRD Report No. 876a-RO, RomaniaFlood Recovery Project, Evaluation of Flood Damages, October 21, 1975, p. 7).Although the floods in June 1975 made it impossible to achieve 1975 plannedincreases in crop production, weather conditions were favorable for cropgrowth later in the year and total crop productLon was slightly larger (0.3%)in 1975 than in 1974. Total agricultural production (crops and livestock)was 3% larger. Total social product from all sources increased by 10% from1974 to 1975. T'herefore, it appears that flood damages in 1975 will not ser-iously deter achievement of agricultural investments and production plannedfor 1976-80.

4.34 Romania maintains prices for farm products that are below those ininternational markets at official exchange rates. But low prices have not

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retarded growth of agricultural production during the last two decades. In-put prices also are maintained at low prices to encourage production in-creases. Romania follows centrally planned approach and uses administrativemeasures to allocate resources and to achieve investment targets and dependsonly to a limited extent on prices for allocating resources. Large capitalinvestments have been made in agriculture and continuation of these programsshould assure increased output for export and domestic consumption.

4.35 Improvement of productivity levels on CAPs has lagged behind thoseon IASs. But Romanian authorities are well aware of the potentials for in-creasing productivity of CAPs and individual farms and are taking steps toimprove their performance under the 1976-80 plan by supplying CAPs and SANswith more fertilizer, pesticides and other current inputs and with moreinvestment funds for making capital improvements. Consequently, there aregood prospects for raising crop yields on CAPs to levels being achieved onIASs. There are excellent opportunities for Bank projects to help Romaniaovercome constraints to further expansion in agricultural production byhelping to supply capital investments required to upgrade technology andmake wise use of scarce capital inputs which will raise productivitylevels of land and labor.

V. INVESTMENT PROJECTS

A. Government Project Proposals

5.01 The Government proposed for World Bank financing ten projects tothe mission in June 1975. The Review Mission of May-June 1976 was informedthat the Government has modified the project list so that three of the ori-ginally proposed projects will be retained and the remaining seven replacedby five new projects. Of the three retained, the Rasova-Vederoasa was ap-proved by the Executive Directors and a loan agreement was signed in April1976. Ialomita-Calmatui has been appraised and Viisaora Irrigation projectis being prepared. The reasons for replacing the other projects were oneor more of the following:

(a) the project execution has begun;

(b) the project concept on further consideration has beenmodified;

(c) the project originally proposed is not included in thecurrent plan;

(d) the new project is considered suitable for Bank appraisal;

(e) the project's location is changed with a view to avoidproblem soils and undulating terrain.

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5.02 The latest proposals as given to the Review Mission are listed inTable 5.1.

5.03 Three points concerning these project prop6sals are noteworthy.First, the new irrigation projects (items 3, 4 and 5) are either in thesouthern or in the eastern parts of the country, covering land in only fourof the 39 judets in Romania, where irrigation potential is great. The twoagricultural projects in which the Bank is now participating and the Rasova-Vederoasa project also are located in these parts of the country. Consequently,Bank participation in these projects would mean concentration of Bank invest-ments for agricultural development in one region of Romania. However, Romaniais placing priority on investments for irrigation, drainage works and asso-ciated flood control in those areas where studies show that economic and fi-nancial return from investments will be largest. The five irrigation projects,together with the Rasova-Vederoasa project and the Giurgiu-Razmiresti Projectin which the Bank already is participating would cover nearly 600,000 ha ofthe additional 1.2 million ha that is planned to be brought under irrigationduring 1976-80.

5.04 Second, the irrigation projects include investment plans for landreclamation works amounting to approximately 12 billion lei. Additionalinvestments in livestock sub-sector and marketing and processing as plannedby the Government are both necessary and desirable.

5.05 Third, thus far Romania's approach to regional development involvesimplementation of integrated irrigation and agricultural development projects.This approach is generally acceptable and should be encouraged. Bank parti-cipation in agricultural development projects, however, should ensure thatproject related facilities (marketing, processing, flood control) are pro-vided adequately and in time.

B. Other Project Possibilities

5.06 There are numerous project possibilities in addition to those inTable 5.1. Included among these are installation of sugar mills, moderniza-tion of fruit and vegetable processing and marketing facilities and expansionof current seed improvement and pasture development programs. The Governmentofficials discussed with the mission only those projects which are proposedfor World Bank financing. The mission's comments in the following sectionembrace only those projects.

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Table 5.1 Projects Proposed For World Bank Financing During 1976 - 80 Plan

Total Estimate InvestmentProject Capacity Million Lei Million US$

1. Rasova-Vederoasa Irrigation,Agriculture and Livestock 1/Development Project 65,000 ha 2,610. 130.5 -

2. Ialomita-Calraatui 140,400 ha 3,620 181.0 -

3. Sistemul-Viisoara Irrigation 106,770 ha 4,300 215.0-/(First Phase)44,400 ha(2nd Phase after1980)

4. Boianu Irrigation 23,600 ha 3,000 150.0-(First Phase)58,400 ha(2nd Phase after1980)

5. Daieni-Ostrov-Pecinaga Irrigation 46,360 ha 1,300 65.0-/

4/6. Greenhouse Vegetable Production 800 ha 4,600 230.0-

Project (Greenhouses)+ Cold Storage 4,000 200. i

7. Eggs, Poultry and Meat DevelopmentFive Year Program (1976-80) - 2.2 billion eggs(Production & Processing) - 160,000 tons poultry

meat

8. Pork Production and Processing - Production of 5,100 255.0-4-/Five Year Program (1976-80) 7 - 8 million porks

- Development offeed and processingfactories

1/ Project No. 1 was signed in April 1976 and No. 2 appraised in April 1976;cost is Bank estimate.

2/ Total cost includes Second Pnase, but excludes livestock and other relatedagricultural components which are proposed to be included. Cost as estimatedby Romania.

3/ This was one of those projects suggested to the mission in June 1975.4/ This is total Plan Program and a part of it may be implemented during 1976.

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C. Tentative Project Recommendations

5.07 As mentioned above, a loan agreement on the second Rasova-Vederoasairrigation project was concluded in April 1976 and a third irrigation project(Ialomita-Calmatui) has been appraised and is proposed for financing in FY77.While the Bank should consider financing of further irrigation projects, e.g.,items 3 to 5 and where appropriate include integrated agricultural develop-ment components, it would be desirable to get into new areas. It would beappropriate that segments of projects Nos. 6, 7 and 8 (Table 5.1) are furtherprepared for Bank financing in FY77 initially for a two-year period, and ifsuccessful, continued during subsequent years. Any of these projects wouldenable technical dialogue between the Bank staff and different departmentsfrom the concerned Romanian institutions.

5.08 Among the irrigation projects, assuming other things being equal,projects located in zones with relatively lower or erratic rainfall should begiven priority.

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APPENDLX TABLES

Table No. Title Page No.

Agriculture in the Economv

1.1 Total Population and Rural Population ....................... 741.2 Total Employment and Employment in Agriculture ............... 741.3 Index Numbers of Social Product, National Income and

Fixed Assets of Total Economy and Agriculture .751.4 Agriculture's Share of Social Product, National

Income and Fixed Assets .751.5 Index Numbers and Structure of Gross Agricultural

Production ................................................... 761.6 National Investment in Four Plan Periods ..................... 771.7 Inco2e Taxes of Workers in State Enterprises and

'-'e:nbers of CAPs ............................................. 781.8 Principal Agricultural Exports and Imports .... .............. 79

Land Use and Crops

2.1 Land Use and Irrigated Area; Selected Years .................. 802.2 Area Under Crops, 1954 - 1975 .. ............................. 812.3 Crop Production, 1954 - 1975 .. .............................. 822.4 Crop Yields Per Hectare ................................ ,. 832.5 Period Averages of Cropped Area, Crop Production

and Yield Per Hectare .842.6 Fruit and Grapes: Area, Total Production and

Yield Per Hectare ........................................ 85

Livestock

3.1 Livestock Numbers at Beginning of Year ....................... 863.2 Livestock Production ......................................... 87

Structural OrganiAation of Farm.ing

4.1 Area Ufider Crops by Type of Production Unit .................. 884.2 Principal Indicators of State Agricultural Enterprises ...... 894.3 Principal Indicators o f Agricultural Production Cooperatives 904.4 Principal Indicators of Stations for

Agricultural Mechanization (Only) ............................ 91

Farm Mechanization, Fertilizer, and Irrigation

5.1 Number of Agricultural Tractors and Machines in the Country. 925.2 Chemical Fertilizer Used In Agriculture by Type of

Production Unit .935.3 Fertilizer Production, Consumption, and Exorts .945.4 Estimated Distribution of Fertilizer Among Crops, 1975. 945.5 Irrigated Area by Type of Production Unit and Land Use .55.6 Average Increases in Cron Yields by Optimum

Fertilizer Use .96

The Academ7 of Aericulture and Forestry Sciences

6.1 List of Subordinate Research Institutes, Central Stations 97and Research Stations ...................... . ........

Table 1.1: TOTAL POPULATION AND RURAL POPULATION'(000)

Total Rural Percent Rural

1930, Dec. 30 14,281 11,229 78.61948, Jan. 25 15,873 12,159 76.61956, Feb. 21 17,489 12,015 68.71960, July 1 18,403 12,491 67.91965, " 19,027 12,610 66.31966, " 19,103 11,797 61.81970, 20,253 11,994 59.21971,, 20,470 12,047 58.91972, 20,663 12,072 58.41973, 20,828 12,067 57.91974, 21,029 12,050 57.31975, " 21,245 12,063 56.8

Source: Statistical Yearbook of the Socialist Republic of Romania, 1975.

Table 1.2: TOTAL EMPLOfl4ENT AND E;PLOvI{ET1T IN AGRICULTURE(000)

Total Agriculture Percent InAgriculture

1950 8,377 6,209 74.11960 9,538 6,233 65.41965 9,684 5,477 56.51970 9,875 4,849 49.11971 9,939 4,602 46.31972 9,971 4,382 44.01973 10,021 4,206 42.01974 10,070 4,012 39.81975 10,150 3,837 37.8

Source: Statistical Yearbook of the Socialist Republic of Romania, 1975.

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Table 1.3: INDEX NUMB3RS OF SOCIAL PRODUCT, NATIONAL INCOME ANDFIXE3 ASSETS OF TOTAL ECONOMY LSD AGRICULTURE

(1950=100)

Social Prodluct National Income Fixed Assets

Total Agriculture Total Agriculture Total Agriculture

1950 100 100 100 100 100 1001955 186 163 192 170 125 1101960 263 171 268 169 161 1271965 14 198 413 169 223 1591970 629 218 599 164 337 2131971 701 264 680 214 368 2351972 771 283 748 229 398 2541973 852 287 828 217 433 2791974 947 293 931 213 478 302

1975 1,000 3C2 1,000 213 534 334

Source: Statistical Yearbook of the Socialist Republic of Romania, 1975.

Table 1.4: AGRICULTURE'S SHARE OF SOCIAL PRCDUCT, NATIONALINCOQ-S AND FIXED ASSETS

(Percentages)

Social National FixedProduct Income Assets

1938 30.1 38.1 -1950 25.7 27.8 19.01955 30.4 37.4 16.61960 24.5 33.0 14.91965 21.5 28.9 13.51970 16.5 18.5 11.51971 18.1 22.2 11.61972 17.1 21.2 11.61973 16.1 18.5 11.71974 14.1 15.9 11.51975 13.2 15.0 11.4

Source: Statistical Yearbook of the Socialist Republic of Romania, 1975.

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Table 1.5: INDEX NUMBERS AND STRUCTURE OF GROSS AGRICULTURAL PRODUCTION

Index Numbers Structure

Total Crops Livestock Total Crops Livestock-- --- 1955 Prices-- -

1938 100 100 100 100.0 69.7 30.31948 62 55 76 100.0 62.6 33.41950 74 65 94 100.0 61.4 33.61955 120 119 123 100.0 68.9 31.11960 126 118 145 100.0 65.3 34.71965 143 133 163 100.0 65.3 34.7

- - - - -1963 Prices- - - - -

1965 143 133 163 100.0 63.2 36.81970 157 136 201 100.0 58 .8 41.21971 186 172 219 100.0 62.3 37.71972 204 185 246 100.0 61.3 38.71973 206 179 265 100.0 58.7 41.31974 208 180 269 100.0 58.5 41.51975 214 181 287 100.0 57.0 43.0

Source: Statistical Yearbook of the Socialist Republic of Romania, 1975.

Table 1.6: NATIONAL INVESTMENT IN FOUR PLAN PERIODS

Plan Periods Total Agricultural Industry OtherMillion Lei Annually- 1/ - - - - - -

2nd Five-fear Plan, 1955-59 17,420 2,618 8,170 6,602Six-Tear Plan, 1960-65 37,893 7,11z 17,440 13,339Third Five-Year Plan, 1966-70 66,159 10,311 33,078 22,770Fourth Five-Year Plan, 1971-75 109,796 15,393 55,449 38,954

- - - - - - - - - - - - Percentage Composition - - - -

2nd Five-Year Plan, 1955-59 100.0 15.2 46.9 37.9Six Year Plan, 1960-o5 100.0 18.8 46.0 35.2Third Five-Year Plan, 1966-70 100.0 15.6 50.0 34.4Fourth Five-Year Plan, 1971-75 100.0 14.0 50.5 35.5

1/ Data for 1955-65 in 1959 prices; data from 1966 onwards is 1963 prices.

Source: Statistical Yearbook of the 3ocialist Republic of Romiania, 1975.

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Table 1.7: INCOME TAXES OF WORKERS IN STATE ENTERPRISESAND MEMBERS ON CAPs

Workers in State Enterprises Members on CAPsMonthly Income Tax Taxable Income Income Tax /1Income Amount % of per Year Amount(lei) (lei) Income (lei) (lei) %

910 - - Less than 1,500 6.51,000 42 4.20 1,501 - 2,000 97.5 + 7.01,500 156 10.40 2,001 - 2,500 132.5 + 7.52,000 259 12.95 2,501 - 3,000 170.0 + 8.02,500 354 1.4.16 3,001 - 3,500 210.0 + 8.5

3,000 449 14.97 3,501 - 4,000 252.5 + 9.03,500 548 15.66 4,001 - 4,500 297.5 + 9.54,000 648 16.20 4,501 - 5,000 345.0 + 10.04,500 748 16.62 5,001 - 5,500 395.0 + 10.55,000 848 16.96 5,501 - 6,000 447.5 + 11.0

6,000 1,057 17.62 6,001 - 6,500 502.5 + 11.57,000 1,267 18.10 6,501 - 7,000 560.0 + 12.08,000 1,492 18.65 7,001 - 8,000 620.0 + 13.09,000 1,712 19.02 8,001 - 9,000 750.0 + 14.0

10,000 1,932 19.32 9,001 - 10,000 890.0 + 15.0Over 10,000 1,040.0 + 16.0

/1 The percentage numbers indicate the share of income that must be paid ontaxable income above the lower number in the income bracket, e.g. onincome above 1,501 lei up to 2,000 lei, etc.

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Table 1.8: PRINCIPAL AGRICULTURAL EXPORTS AN2D IMPORTS('000 tons)

Item 1960 1965 1970 1971 1972 1973 1974

Exports

Total grain, of which 731 882 373 704 902 1,128 713Wheat 140 170 14 236 544 776 641Maize 567 680 357 466 357 350 71

Meat and meat productsTotal, of which 55 61 55 61 77 111 132Boneless beef 15 34 23 28 30 46 48Boneless pork 29 12 17 18 24 35 51Tinned meat 5 8 13 12 18 23 24

Eggs (millions) 121 246 312 320 400 432 357Cheeses 1 4 8 5 8 10 8Fresh vegetables 25 137 140 222 224 220 185Fresh fruit 20 97 52 47 73 55 57Potatoes 27 11 15 24 92 36 17Tinned vegetables 2 11 27 38 49 61 61Tinned fruits 66 86 75 90 84 85 83Edible vegetable oils 32 33 119 132 129 142 165Edible animal fats 13 19 26 19 20 41 52Refined sugar 77 34 39 10 156 - 107Wines 43 43 69 80 70 84 90Other alcoholic beverages 1 9 11 10 14 13 17

Imports

Ginned cotton 51 67 83 91 97 108 104Rice 14 37 36 61 29 70 40Cocoa 3 6 6 7 8 10 10Citrus fruit 16 22 27 43 50 63 69Olives 5 7 5 6 6 6 6Edible vegetable oils 3 1 7 1 1 1 5Raw and refined sugar - - 91 119 76 74 82

Source: Statistical Yearbook of the Socialist Republic of Romania, 1975. Thisstatistical volume does not report imports of grains which have variedfrom 1.1 million tons in 1971 to 0.4 million tons in 1975.

Table 2.1: LAND IJSE AND IRRIGATED AREA; SELECTED YEARS('000 ha)

Land Jse 1938 1950 1955 1960 1965 1970 1971 1972 1973 1974 1975

Arable! 10,093 9,378 9,662 9,821 9,814 9,733 9,728 9,713 9,658 9,703 9,741Pasture 2,703 2,852 2,693 2,814 2,945 3,002 3,007 3,031 3,047 3,037 3,033Meadows 1,714 1,682 1,361 1,387 1,371 1,416 1,421 1,424 1,431 1,423 1,413VineyE.rds 249 227 229 311 312 347 345 339 335 332 329Orchards 247 184 167 214 349 432 434 436 433 434 430

Subtotal 15,006 14,324 14,112 14,547 14,791 14,930 14,935 14,943 14,904 14,929 14,946

Forest 6,476 6,446 6,483 6,403 6,378 6,315 6,313 6,312 6,309 6,313 6,316Other 2,268 2,980 3,155 2,800 2,581 2,505 2,501 2,495 2,537 2,508 2,488

Total 23,750 23,750 23,750 23,750 23,750 23,750 23,750 23,750 23,750 23,750 23,750

Irrigatedarea 15 42 93 200 230 731 957 1,144 1,255 1,396 1,474

Source: Statistical Yearbook of the Socialist Republic of Romania, 1975.

Table 2.2: A7t2A UNDER CROPS, 1954-1975(000 ha)

1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1969 1969 1970 1971 1972 1973 1974 1975

OraiesWiht as rye 2653 3150 3066 3123 3113 3107 2934 3059 3120 2954 3050 3085 3125 2975 2960 2801 2366 2549 2565 2391 2429 2386BaIley 438 390 300 303 292 289 266 284 250 224 195 233 246 257 292 307 288 330 327 314 403 442Oat. 435 385 339 352 311 299 270 243 173 130 89 116 138 127 132 131 131 128 121 125 85 70Malze 3302 3265 3571 3722 3645 3554 3572 3428 3107 3379 3319 3306 3289 3221 3344 3293 3084 3131 3196 2957 2963 3305Rice 15 19 17 10 17 27 21 11 7 14 20 19 20 22 25 29 28 27 27 23 23 22other 19 10 9 7 8 5 3 4 7 8 20 7 4 2 4 2 4 2 1 1 _ 15

So - Tota.l 6862 7219 7302 7522 7386 7281 7066 7029 6664 6709 6693 6766 6821 6604 t;657 65901 6166 M22 5791 5903 6240

PulsesiPeas 96 82 43 37 36 49 91 89 152 139 94 99 119 119 511 97 106 96 79 61 37 23Rtoane 67 54 40 39 37 30 29 28 24 39 41 27 28 44 39 39 49 62 72 81 83 94Soybes-s 28 28 30 18 12 22 25 10 9 8 5 6 17 49 49 54 79 147 109 183 238 121Other 8 5 4 5 6 6 8 5 6 7 6 4 4 1 4 2 3 3 2 1 1 1

Sc. - Tetal 196 99 492 117 915 91 107 3. .M -I6 _la 21i 359 229

Tooheial C OPsFli for fibr 23 25 24 24 19 18 RE 59 29 30 25 23 29 32 34 35 36 40 46 48 S1hft* for fibhe 59 58 55 48 44 37 36 31 24 23 26 21 23 28 29 29 23 25 25 27 32Cottos 172 169 113 60 14 15 - - - - - - - - - - - - - - 5Soflouis 336 300 294 286 352 513 460 439 427 464 467 462 468 481 520 533 604 548 554 512 509 511Fla for.oil 30 29 33 34 24 26 27 28 30 30 47 51 54 63 66 72 79 84 83 84 82 83Sugar be,t 107 145 139 131 141 201 200 172 155 179 190 190 143 176 185 188 170 178 197 234 219 247Tob-cco 32 34 35 40 47 36 22 28 38 41 40 38 38 39 36 36 34 39 3e 52 53 57Chicory I 1 1 1 1 2 2 2 1 1 2 1 1 1 2 1 1 1 1 1 1

odiein.] crops, etc. 1 17 IS 12 9 10 7 9 9 14 12 9 9 11 10 12 13 12 19 16 20 23Other 33 36 ND 49 62 59 71 S9 44 42 50 38 93 50 47 50 45 42 48 f7 65 65

Set - Total .1l .111 764 685m 7.u 917 222 -35 -du 121 85ci .131 fS 225 956 -521 363 2.221 1932 1079

Potstos, Ve-ethbls aad MIlossPotatoes 250 229 256 265 276 276 292 293 299 319 306 299 306 315 316 305 296 590 296 294 595 049Ve3euta s 5 121 lit 109 172 173 196 195 181 182 204 195 191 195 195 217 223 225 227 221 235 230 223

elo-s a,d Wsteeroelo- i 20 23 20 24 26 22 19 17 17 21 20 19 19 10 17 16 12 IS 16 13 12 13Other 67 59 56 - I - - - I 1 -_ - -

S d - Total .440 2475 4 2.2 2I2 4.2 -Ad54 22u2 2A21 497 -. iv544 21 2_u2 22 21 2.1 _2z 537 525

Fodder Croes.P-erennis for hay 394 309 281 262 313 293 371 363 396 458 S00 566 586 705 741 798 733 767 754 829 797 992Adnle or h y 336 311 387 391 375 346 350 365 340 293 257 234 218 189 163 135 145 165 190 149 123 86Aecs-l1 for green feed 59 62 68 66 57 76 104 161 193 221 178 220 217 223 201 198 224 240 253 278 243 169silaga crops 26 30 36 41 68 116 253 289 201 378 484 303 203 208 185 210 301 250 256 437 382 231Root -rep 37 30 27 23 18 19 19 28 49 32 25 16 20 14 13 17 20 27 53 69 80 79

SBb - Total .sa 42 22 _ 8t 2 M 1_20097 1226 1427 L12 1489 A339 1244 1339 1303 1358 1423 1449 1506 1761 1625 1457

Seed er-ps sd plaits -- l _24 P7 .21. 96 u 43 -.. 2 5 6 78 .2.i _11 70 k 5 96 9(i 84 IIS 107 109 112 110

Creed Tete 9215 429 9446 9577 912 9675 9727 70 9643 9737 9903 9988 9729 973 9703 9173 33 96 57 O 969

Iotereroppheg, Total t 818 894 1122 1170 1294 1371 2217 2493 2287 2688 2703 2300 2169 1948 1664 1466 1368 1238 1246 996 1045 979

1/ afna, poaphki.s ad pot-toe..

stia- Statlstriol Ye-rbhek of the Serialist Rapablie of Rosimts, 1975,

T.ble 2.3: CROP PRODU0CTION, 1954-1975(000 tIOn)

1954 1955 1956 1957 jx75 1959 1960 1961 1962 1963 1964 1965 1966 1967 1960 1969 1970 1971 1972 1973 1974 1975

Wheat ead re 2310 3220 2572 3853 3037 4128 3552 4094 4129 3077 3916 6062 5165 5891 4896 4396 3399 5661 6099 5528 5048 4912arley 368 445 291 417 305 449 405 468 419 351 348 485 483 531 190 544 513 789 838 730 916 952oate 357 374 305 390 280 315 294 275 167 124 79 124 170 163 114 137 117 161 111 102 91 57le 4953 5577 3932 6338 3657 5680 5531 5740 4932 6023 6692 5877 8022 6858 7105 7676 6535 7850 9817 7397 7440 9241floe 10 35 36 36 37 55 49 31 20 51 54 46 55 68 60 69 65 66 45 5 53 68Otber 9 6 3 4 7 5 5 4 10 10 18 9 4 1 5 0 2 2 3 3 2 1.

Slo - tot-l 8064 9956 7139 11041 7293 10632 9826 10612 9677 10436 11107 12603 13899 13512 12770 12823 10631 14530 16912 13810 13550 15366

P-a- 68 75 28 31 23 49 101 105 136 138 94 123 163 183 76 106 155 123 91 65 45 29te- SO 189 103 111 102 102 148 135 78 78 87 78 114 10S 43 84 73 93 89 83 91 82876b8- 12 14 10 9 6 9 12 5 3 3 3 3 20 41 47 51 90 165 186 284 298 2130th-r 3 4 3 3 2 3 5 3 4 5 2 3 2 1 2 2 2 3 1 1 1 1

eteral Coro!r1n Fpbra 26 45 46 50 28 28 42 38 61 54 41 53 77 68 46 60 60 94 82 73 101 114_-W 130 144 129 121 92 114 105 89 68 66 74 72 91 113 114 117 77 112 98 117 120 184Ct.ton 79 20 19 13 5 3 - - - - - - - - - - - -8erefl .e 291 277 223 255 286 529 522 481 449 506 518 564 671 720 730 747 770 791 850 756 681 728rl for oil 10 10 10 12 5 10 10 12 12 19 24 35 38 39 30 37 42 58 Sl 45 40 45Sugar bh-r 1408 2000 1019 2043 1732 3446 3399 2911 1180 2298 3668 3275 4368 3830 3936 3783 3175 3975 5581 4380 4947 4985Tobeeco 19 26 26 36 31 25 15 18 26 40 42 34 40 35 32 24 22 30 38 38 39 40ChWehr, 14 10 13 12 13 19 19 28 16 9 16 10 14 13 23 11 9 9 8 7 6 5M"dIctoll cpe 4 5 5 7 6 6 6 8 6 10 9 9 10 9 6 8 9 13 13 10 11 14Other 5 6 5 51 25 29 34 27 IS 34 16 48 63 62 41 57 58 14 17 26 -

Pgotato. Vr~ ratble. ad MaloePetter . 2396 2608 2675 3058 2777 2896 3009 2875 2597 2692 2640 2195 3352 3096 3706 2165 2064 3783 3672 2644 4119 2716V*Mmta be 1250 1196 780 1460 1354 1909 1831 1712 1454 1701 1763 1654 2176 2000 2296 1963 2004 2581 2544 2779 2955 2518Melo.- 370 439 217 344 234 243 188 155 015 220 170 146 195 164 121 117 90 145 146 131 149 160

Fedd r C-gu? 3,i1l foe hey 976 904 720 711 760 758 989 968 914 1074 1427 1847 2293 2561 2122 2882 2568 2584 2861 3158 3094 3913atanI Per hey 726 705 650 846 615 794 1116 1171 710 798 741 671 889 661 350 386 641 512 574 450 430 325aaIc fOr gream d 536 798 627 532 420 606 1222 2218 2005 2921 3015 3970 4748 4380 3995 3884 4208 5391 6110 5460 5469 5901Setl erpe 687 377 329 709 1129 1935 4601 5231 5971 1790 5835 3296 4157 3124 4019 3866 3622 4832 2841 2895 6447 5989loot repa 603 432 326 281 219 291 276 378 425 293 300 254 371 269 302 420 446 60 2230 1990 2099 2321

Soure. St-tiattar l Yo baeok of the Seelint RPehbllo of RatOn, 1975

Table 2.4: CROP YIELDS PER HECTARE(Quintals)

1938 1948 1950 1960 1965 1970 1971 1972 1973 1974 1975

GrainsWheat and rye 13.1 9.3 8.0 12.1 19.7 14.4 22.2 23.8 23.1 20.8 20.6Barley 7.2 5.8 6.1 15.2 20.9 17.8 23.9 25.6 23.2 20.8 21.5Oats 7.1 6.6 5.4 10.5 10.7 8.9 12.5 9.1 9.8 10.7 8.1Maize 10.6 6.2 7.4 15.5 17.8 21.2 25.1 30.7 25.0 25.1 27.8Rice 25.6 14.4 20.9 23.9 24.5 23.4 24.2 16.7 21.7 22.8 31.3

PulsesPeas 9.8 7.1 5.7 11.0 12.5 14.5 12.8 11.6 10.7 12.3 12,6BeansLl 3.3 5.0 2.4 7.3 5.0 5.9 6.2 5.7 6.4 6.2 5.8Soybeans 9.4 5.8 4.1 4.8 4.8 11.4 11.2 17.1 13.4 12.5 17.6

Fibre cro sFlax 5.5 17.1 18.3 18.6 23.2 18.4 23.4 17.7 15.2 19.6 19.0Hemp 27.6 24.5 18.9 28.7 34.1 33.2 49.1 39.3 42.4 37.7 42.0

Oilseed cropsSunflower seed 8.7 3.0 4.2 10.7 12.2 12.7 14.4 15.4 14.8 13.4 14.3Flax - - 1.5 3.8 6.9 5.4 6.9 6.1 5.3 4.8 5.4Castor seed 6.7 3.4 3.4 11.2 5.3 5.9 5.9 5.0 5.4 4.4 6.0Poppy seed 5.7 4.0 1.5 4.5 4.5 4.4 5.0 3.7 4.0 4.3 2.4Mustard seed 2.6 1.8 1.8 3.8 4.6 2.5 4.5 3.9 4.9 5.9 6.1

Other Industrial ctepsSugarbeets 148.8 89.2 81.3 170.0 172.4 186.8 223.3 283.9 186.9 226.4 198.6Tobacco 8.1 5.3 4.7 7.2 9.2 6.7 9.2 9.7 7.3 7.3 7.0Chicory 153.0 51.7 - 86.0 99.6 93.7 86.4 73.8 85.9 52.0 50.6

Potatoes. Vegetables and melonsPotatoes 82.6 39.1 69.5 102.8 72.9 72.0 i3o.4 124.0 92.0 139.6 94.0Onions 51.7 28.2 45.6 72.1 63.9 55.7 67.9 72.8 71.6 77.2 59.4Cabbage 98.6 49.5 79.8 159.9 135.5 144.8 191.0 189.7 182.0 195.0 184.0Tomatoes 62.5 34.2 74.6 128.3 137.4 106.5 138.0 143.0 160.0 166.3 117.4Green pepper 27.8 14.7 24.6 70.4 72.4 63.1 79.0 82.2 83.6 95.5 51.oGarlic 12.3 - 18.3 27.3 21.6 21.2 28.9 25.9 27.1 27.5 26.7Edible roots - 30.2 54.9 96.2 96.5 86.8 110.1 103.5 108.9 108.6 90.3Watermelons and melons 54.3 50.7 71.8 100.2 75.2 70.1 91.0 85.5 90.5 111.6 111.2

Fodder cropsLucerne 36.5 19.5 22.0 23.2 36.1 41.1 39.1 41.1 45.1 45.7 51.3Clover 34.4 17.7 24.6 26.2 28.0 28.1 30.0 26.1 34.2 29.6 35.5Vetch - 9.5 12.7 24.6 29.0 29.7 30.3 28.8 28.1 - -Annuals for green feed - - - 94.8 103.1 102.6 132.2 123.4 108.0 115.2 142.5Plants used for silage - - - 165.3 89.9 90.7 142.9 166.0 107.8 121.3 139.6

1/Presumably based on the area harvested for beans.Source: Stetistical Yearbook of the Socialist Republic of Romania, 1975.

_84_

Table 2.5: PERIOD AVERAGES OF CROPPED AREA ,. CROP PRODUCTION, AND YIELD PER HECTARE

1934-38 1951-55 1956-60 1961-65 1966-70 1971-75Cr-op

--------------------------- Area Cultivated ('000 hectares) -------------------------

Grains, total 8186.2 6970.6 7311.6 6722.2 6509.2 6068.2

Wheat 2742.2 2955.8 3068.7 3053.8 2825.8 2463.9Maize 3884.1 3056.8 3613.0 3307.9 3246.0 3110.5

Pulses, total 120.3 195.4 113.8 159.3 202.7 296.7

Sunflower 55.8 354.2 385.1 452.1 521.1 526.8Sugarbeet 25.6 110.8 162.6 177.1 182.6 214.9Potatoes 151.0 247.5 271.9 302.8 305.8 290.8Vegetables 69.6 191.6 177.3 188.6 209.1 227.1

Fodder crops, total 637.1 781.2 871.9 1379.3 1333.4 1559.7

Lucerne 124.3 230.0 142.8 239.7 421.1 431.6Cloyver 155.0 91.2 143.5 191.1 197.3 211.6

---------------------------- Crop Production ('000 tons) ----------------------------

Grains, total 8015.7 8232.3 9186.2 10886.7 12727.3 14814.0

Wheat 2795.0 3338.3 3428.8 4415.7 4748.9 5449.7Maize 4055.5 3934.9 5027.6 5852.7 7239.2 8348.9

Pulses, total 263.5 195.7 193.5 217.2 271.8 381.0

Sunflower 48.4 265.7 362.9 503.8 727.5 760.0Sugarbeet 392.5 1293.1 2233.6 2637.2 3513.1 4757.0Potatoes 1317.8 2351.5 2883.2 2599.7 2876.9 3387.0Vegetables - 1590.1 1523.6 1657.0 2087.9 2675.0

Fodder crops, total 867.3 783.6 787.6 1245.9 2485.3 3061.8

Lucerne 407.5 529.3 340.9 722.2 1700.3 1939.0Clover 459.8 240.9 415.1 465.5 602.7 722.9

- ……------------------------- Yield per Hectare (Quintals) --------------------------

Wheat 10.2 11.3 11.2 14.5 16.8 22.1Maize 10.4 12.9 13.9 17.7 22.3 26.8Sunflower 8.7 7.4 9.1 11.1 14.0 14.5Sugarbeet 153.5 116.7 137.4 148.9 192.4 221.4Potatoes 77.2 94.6 105.3 89.1 93.2 114.1Lucerne 32.8 23.0 23.9 29.4 40.0 44.6Clover 29.7 26.4 28.9 22.8 28.0 31.6

Source: Statistical Yearbook of the Socialist Republic of Romania, 1975.

85

Table 2.6: FRUIT AND GRAPES: AREA, TOTAL PRODUCTIONAND YIELD PER HECTARE

Fruit GrapesYield Yield

Year Area Production per ha Area Production per ha('000 ha) ('000 tons) (tons) ('000 ha) ('000 tons) (tons)

1955 - 977.1 - 213.2 1,109.5 5.21956 - 555.9 - 222.4 577.8 2.61957 147.2 551.3 3.7 229.5 882.4 3.81958 147.3 959.3 6.5 240.4 1,162.2 4.91959 152.5 1,170.1 7.7 257.1 972.9 3.81960 152.8 829.3 5.4 270.5 874.3 3.2

1961 156.1 980.0 6.3 277.9 751.1 2.71962 153.9 713.8 4.6 263.4 1,032.1 3.91963 159.9 1,047.7 6.6 247.1 936.5 3.81964 185.3 650.7 3.5 256.4 897.5 3.51965 210.5 1,134.6 5.4 242.2 921.3 3.8

1966 206.0 1,390.3 6.7 253.4 954.1 3.81967 221.6 1,206.0 5.4 264.1 910.2 3.41968 259.2 1,053.5 4.1 278.0 1,167.1 4.21969 286.2 1,676.8 5.9 287.9 1,189.4 4.11970 306.2 1,141.2 3.0 292.8 759.9 2.6

1971 320.7 969.0 3.8 298.6 1,111.2 3.71972 336.0 1,279.1 3.8 300.4 1,055.2 3.51973 345.9 971.1 2.8 298.4 1,576.3 5.31974 349.1 1,058.9 3.0 297.6 1,087.2 3.71975 351.3 1,076.3 3.1 295.7 1,181.9 3.7

Source: Statistical Yearbook of the Socialist Republic of Romania, 1975.

Table 3.1: LIVESTOCK NUMBERS AT BEGINNING OF YEAR

Cattle Pigs Sheep Goats PoultryTotal Cows Total Sows Total Ewes and Total She

Ewe Lambs Goats…---__-----------------------------------…Thousands-----------------------------------------------------

1938 3,653 1,787 2,761 606 10,087 8,357 364 298 27,3251951 4,502 2,200 2,197 242 10,222 7,945 498 417 17,6101955 4,630 - 4,370 - 10,882 - - - 29,5001956 4,800 1,950 4,950 - 11,120 - -- 33,0001958 4,470 - 3,249 - 10,374 - - 35,000

1959 4,394 - 4,008 - 10,662 - -- 35,0001960 4,450 - 4,300 - 11,200 - - - 37,000

1961 4,530 2,240 4,300 545 11,500 9,300 404 332 38,0001962 4,707 - 4,665 - 12,285 - -- 44,6921963 4,566 - 4,518 - 12,168 - -- 34,150

1964 4,637 - 4,658 - 12,400 - - 38,3581965 4,756 - 6,034 - 12,734 - - 39,910

1966 4,935 2,328 5,365 461 13,125 9,852 807 660 40,0851967 5,198 - 5,400 - 14,109 - -- 43,9661968 5,332 - 5,752 _ 14,380 - -- 47,148

1969 5,136 - 5,853 _ 14,298 - -- 47,6181970 5,035 - 5,972 - 13,836 - -- 53,894

1971 5,216 2,625 6,359 682 13,818 10,655 536 478 54,3331972 5,528 2,742 7,742 788 14,071 10,941 563 489 61,2621973 5,767 2,838 8,785 881 14,455 10,968 534 465 64,496

1974 5,897 2,940 8,987 893 14,302 10,866 499 423 66,5111975 5,983 2,997 8,566 825 13,929 10,620 443 400 67,672

Source: Statistical Yearbook of the Socialist Republic of Romania, 1975.

Table 3.2: LIVESTOCK PRODUCTION

Meat Milk Eggs Wool HoneyYec-r Total Pork Total Cow

(000 tons live weight) ('000 Els.) (Millions) (Tons) (Tons)

1938 763 326 21,575 17,600 1,354 15,130 2,5601950 644 214 22,930 18,930 1,100 15,600 2,5201955 886 401 25,726 21,986 1,546 20,710 3,3001956 818 326 - 20,553 1,766 19,503 -

1957 801 311 - 21,850 2,000 19,113 -

1958 852 312 - 24,580 2,002 19,562 -

1959 903 356 - 27,100 2,160 21,000 -

1960 969 376 32,420 28,620 2,355 21,850 4,0401961 1,057 399 - 29,900 2,600 23,000 -1962 1,036 412 - 28,000 2,568 24,200 -1963 910 339 - 26,520 2,258 22,600 -

1964 1,102 469 - 26,600 2,456 24,779 -

1965 1,116 454 32,518 28,831 2,630 25,410 7,7181966 1,265 503 - 33,336 2,814 26,072 -1967 1,356 568 - 37,194 3,011 28,6261968 1,297 566 - 34,577 3,113 30,583

1969 1,271 557 - 34,057 3,315 30,752 -1970 1,393 623 37,932 34,427 3,537 29,725 7,638[971 1,555 710 38,494 34,851 3,984 28,670 11,8291972 1,787 846 41,554 37,702 4,300 30,697 11,5361973 1,934 920 43,683 39,864 4,655 31,037 11,123

1974 1,926 942 43,482 39,860 4,871 30,861 9,9581975 2,063 957 44,421 40.990 5.412 31.532 7,585

Source: Statistical Yearbook of the Socialist Republic of Romania, 1975.

Table 4.1: AREA UNDER CROPS BY TYPE OF PRODUCTION UNIT

1950 1955 1960 1965 1970 1971 1972 1973 1974 1975

000 Ha - - - - - - - - - - - -

Total, State Agric. Units 523 1220 1596 1670 1644 1758 1806 1803 1812 1825Etate Agric. Enterprises 474 647 1284 1576 1544 1636 1668 1643 1633 1637

Other State Units 48 573 312 94 100 122 138 160 179 188Total, Agric. Prod. Coops 43 804 3200 7564 7092 7332 7412 7305 7316 7365

Ciperated by CAP's 41 772 2980 6770 6311 6537 6617 6513 6535 6585Operated by CAP Members 2 32 220 794 780 795 795 792 781 780

Agricultural Associations - 358 3142 14 1 1 1 - - -

Individual farms 8576 7060 1797 446 443 450 446 451 447 458

Grand Total 9142 9442 9735 9694 9180 9541 9665 9559 9575 9648

- - - - - - - - - - - - - - Percentage Composition - - - - - - - - - - - - - - - - - - - -

Total, State Agric. Units 5.7 12.9 16.4 17.3 17.9 18.4 18.7 18.9 18.9 18.9State Agric. Enterprises 5.2 6.8 13.2 16.3 16.8 17.2 17.2 17.2 17.0 17.0

Other State Units .5 6.1 3.2 .9 1.1 1.2 1.5 1.7 1.9 1.9Total, Agric. Prod. Coops. .5 8.5 32.9 78.0 77.3 76.9 76.7 76.4 76.4 76.3Operated by CAPs .4 8.2 30.6 69.8 68.8 68.5 68.5 68.1 68.2 68.2

Operated by CAP Members .1 .3 2.3 8.2 8.5 8.4 8.2 8.3 8.2 8.1Agricultural Associations - 3.8 32.3 .1 - - - - - -Individual Farms 93.8 74.8 18.4 4.6 4.8 4.7 4.6 4.7 4.7 4.8

Grand Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Source: Statistical Yearbook of the Socialist Republic of Romania, 1975. Cropped area by "other State Units" is more

than the arable area held by them.

Table 4.2: PRINCIPAL INDICATORS OF STATE AGRICULTURAL ENTERPRISE

1960 1965 1970 1971 1972 1973 1974 1975

Number of Units 560 721 370 215 364 369 370 391

Total Personnel (000) 224 301 292 298 297 288 245 252

T Workers (000) 202 267 267 276 275 266 228 235

Agricultural Area (000 ha) 1,720 2,077 2,089 2,068 2,070 2,058 2,057 2,058

Arable Area (000 ha) 1,341 1,627 1,667 1,660 1,664 1,650 1,654 1,659

Fixed Assets (mil lei) 8,984 15,698 27,152 30,472 32,896 33,640 36,481 38,924

Investment (mil lei) 1,516 3,014 4,731 4,487 4,746 4,372 5,007 5,429

Agricultural Tractors:In physical units 16,093 24,716 29,704 31,543 32,106 30,194 27,221 28,381

In terms of 15 HP 23,674 40,974 53,106 55,937 57,926 54,477 48,852 51,224

Gross Agricultural Production (1960-100)Total 100 181 233 263 286 297 285 320 '

Crops 100 172 193 233 246 240 209 232

Livestock 100 203 323 334 378 426 458 519

Production per ha (Quintals)Wheat and rye 17.6 27.8 20.0 28.4 29.9 32.4 27.0 25.5

Maize 18.8 26.7 '33.4 33.7 37.3 33.7 28.1 35.3

Production per animalMilk per cow (litre) 2,730 2,957 2,855 2,544 2,419 2,574 2,367 2,329

Wool per sheep (Kg.) 2.5 2.9 3.3 3.1 3.2 3.3 3.3 3-5

Eggs per chicken (number) 115 184 215 226 225 225 213 217

Source: Statistical Yearbook of the Socialist Republic of Romania, 1975,

Table 4.3: PRINCIPAL INDICATORS OF AGRICULTURAL PRODUCTION COOPERATIVES

1962 1965 1970 1971 1972 1973 1974 1975

Number of Units 5,398 4,680 4,626 4,601 4,549 4,462 4,420 4,419Families (000) 3,925 3,409 3,454 3,455 3,453 3,493 3,437 3,429

Agricultural Area (000 ha) 9,085 8,994 9,033 9,041 9,025 8,991 9,025 9,047Arable Area (000 ha) 7,677 7,387 7,274 7,258 7,219 7,166 7,198 7,229

Families per unit (number) 727 728 747 751 759 772 778 776Agricultural area per unit (ha) 1,683 1,922 1,953 1,965 1,984 2,015 2,042 2,047

Investment, total (mil lei) 2,964 2,811 4,111 4,642 4,419 4,283 4,286 4,777State granted credit 984 372 1,892 2,169 2,089 1,903 1,773 2,087Own funds 1,980 2,439 3,219 2,473 2,330 2,380 2,513 2,690

Gross Agricultural Production (1962=100)Total 100 119 119 146 159 156 158 161Crops 100 120 115 146 158 149 150 150Livestock 100 116 140 146 165 190 197 214

Production per ha (Quintals)Wheat and rye 12.2 18.1 13.4 21.3 22.8 21.6 20.0 20.0Maize 16.0 17.6 20.2 24.6 30.9 24.7 25.7 27.4

Production per animalMilk per cow (litre) 1,551 1,410 1,297 1,205 1,177 1,235 1l191 1,223Wool per sheep (kg) 2.2 2.1 2.2 2.0 2.1 2.1 2.0 2.1Eggs per chicken (number) 81 62 79 138 171 185 182 194

Source: Statistical Yearbook of the Socialist Republic of Romania, 1975, Table 92.

Table 4.4: PRINCIPAL INDICATORS OF STATIONS FOR AGRICUL'TURAL MECHANIZATION (ONLY)

1960 1965 1970 1971 1972 1973 1974 1975

Number of Units 243 264 293 772 743 743 743 743Total Personnel 44,502 85,667 96,118 106,200 113,986 113,912 118,761 126,309Personnel per unit 183 324 328 132 153 153 160 170

Fixed assets, total (mil lei) 5,522 9,796 12,527 13,615 14,203 15,129 17,013 19,137Investments, total (mil lei) 1,467 941 1,534 1,934 1,661 1,699 2,943 3,185

Numbers of MachinesAgricultural tractorsIn physical units 26,598 55,439 75,710 80,425 80,529 82,638 86,532 88,461In terms of 15 HP 39,562 90,128 128,621 139,027 141,038 143,971 152,278 158,086

Tractor drawn ploughs 30,680 62,056 (3,311 72,625 73,333 72,068 75,207 76,706Mechanical cultivators 12,356 14,680 23,824 28,349 29,004 28,102 27,359 27,769Chemical fertilizer spreaders 988 2,020 10,283 10,173 10,611 9,918 9,260 8,691Mechanical sprayers and dusters 1,166 4,082 7,187 7,731 8,200 8,093 9,120 11,316Tractor-drawn grain combines 8,428 23,058 33,615 30,213 26,401 26,507 24,053 17,337Maize combines 30 24 1,583 1,586 1,363 1,529 1,528 1,513Self-propelled combines 698 31 289 1,131 2,455 4,285 8,091 11,927Combiner for silage plants 60 4,109 4,130 4,100 4,197 5,990 6,295 6,925Motor lorries and tankers 785 1,085 1,413 1,522 1,613 1,649 1,693 1,693

Work performed (thousand ha of standard-depth plowing)Total 14,181 34,100 42,473 45,629 47,072 53,152 53,033 60,729of which plowing 4,726 7,604 7,868 7,488 6,950 8,718 7,708 8,252

sowing 2,358 5,798 6,055 6,466 6,365 6,737 6,477 6,845hoeing 852 3,749 5,483 6,146 6,784 6,488 6,682 6,028cereal harvesting 576 1,541 1,723 1,870 2,059 1,996 2,094 2,041

Work performed for Agric . Prod.Cooperatives (thousand ha of standard-depth plowing) 10,495 31,990 36,943 40,205 40,811 46,166 45,428 52,625

Average volume of work per averagetractor in terms of 15 HP (ha ofstandard-depth plowing) 442 401 339 333 343 368 347 391

Average volume of work per worker

(ha of standard-depth plowing) 319 398 442 430 414 466 447 481

Source: Statistical Yearbook of the Socialist Republic of Romania, 1975, Table 91.

Table 5. 1: NUMBER OF AGRICULTURAL TRACTORS AND MACHINES IN THE COUNTRY

1938 1950 1955 1960 1965 1970 1971 1972 1973 1974 1975

Agricultural tractorsIn physical units 4,049 13,713 23,033 44,194 81,356 107,290 114,184 115,606 116,513 116,816 119,533In terms of 15 HP 4,858 16,746 30,488 65,290 132,982 184,772 198,596 204,045 204,548 206,400 .203,652

Tractor drawn plows - 13,642 25,613 46,130 86,215 97,249 96,821 97,465 95,506 95,599 96,633Mechanical cultivators - 1,343 7,787 20,667 23,241 29,346 33,909 35,165 34,594 33,736 34,391Rotary hoes - - - 6,784 17,118 14,443 12,713 10,992 9.643 7,750 6,690MechanLcal seeders - 6,350 12,454 33,948 65,964 54,527 50,711 49,238 43,436 43,672 46,462Chemicial fertilizer spreaders - - - 3,182 4,363 14,504 14,424 14,492 13,718 12,783 12,251Mechanical sprayers and dusters - - - 2,864 5,417 10,713 11,804 13,152 13,130 13,942 16,705Tractor7-drawn grain combines - 74 46 15,995 36,552 43,916 39,753 34,949 33,222 28,438 20,209Maize combines - - - 846 3,143 4,573 4,465 4,308 4,148 3,528 2,956Self-propelled combines - 44 1,489 1,582 292 1,325 2,595 4,628 7,197 12,245 17,912Combiner for silage plants - - - 920 7,716 7,129 6,973 7,161 9,167 9,130 9,445

Arable area per physical tractor (Ha) 2,493 684 420 222 121 91 85 84 83 83 81

Source Statistical yearbook of the Socialist Republic of Romania, 1975,

Table 5.2: CHEMICAL FERTILIZER USED IN AGRICULTURE BY TYPE OF PRODUCTION UNIT(000 tons of Active Substance)

1950 1955 1960 1965 1970 1971 1972 1973 1974 1975All production units

Nitrogen (N) 2.6 9.5 24.7 144.5 366.9 431.2 421.0 419.6 480.3 571.8Phosphate (P205) 1.6 7.1 46.8 110.1 203.2 179.7 172.9 241.8 298.6 314.4Potash (K20) 1.7 5.3 3.0 11.8 24.2 22.5 45.1 53.2 34.8 42.5

Total 5.9 21.9 74.5 266.4 594.3 633.4 639.0 714.6 813.7 928.7

State Agricultural EnterprisesNitrogen (N) 1.0 1.8 13.3 73.1 121.3 134.3 124.1 115.4 118.0 143.9Phosphate (P205) .7 1.8 32.0 54.0 71.8 62.5 54.0 79.1 81.5 90.8Potash (K20) .3 .8 .8 6.1 12.1 11.4 22.4 24.3 13.9 17.3

Total 2.0 4.4 46.1 133.2 205.2 208.2 200.5 218.8 213.4 252.0

Agricultural Production CooperativeNitrogen (N) .1 1.2 8.4 66.0 239.7 290.8 265.1 264.8 314.3 365.8Phosphate (P2 05) .1 .9 10.8 52.0 127.5 113.0 109.8 151.7 195.3 197.3Potash (K20) - .3 1.1 5.2 11.7 10.2 20.2 24.9 17.3 20.2

Total .2 2.4 20.3 123.2 378.9 414.0 395.1 441.4 526.9 583.3

Other JnitsNitrogen (N) 1.5 6.5 3.0 5.4 5.9 6.1 31.8 39.4 48.0 62.2Pho3phate (P205) .8 4.4 4.0 4.1 3.9 4.2 9.1 11.0 21.8 26.3Potash (K2 0) 1.4 4.2 1.1 .5 .4 .9 2.5 4.0 3.6 5.0

Total 3.7 15.1 8.1 10.0 10.2 11.2 43.4 54.4 73.4 93.5

Total Eertilizer use per ha under/,crops3 (Kg of active substance) -All agricultural units .6 2.3 7.6 27.5 64.7 66.4 66.1 74.8 85.0 95.3Stat.e Agr. Enterprises 4.3 6.8 35.9 84.5 132.9 127.3 120.2 133.1 130.7 153.0Agr., Production Cooperatives 5.7 5.2 6.8 18.2 60.0 63.3 59.7 67.8 80.6 80.6Other Units .4 1.9 1.5 7.4 7.7 8.2 31.5 38.8 52.1 65.5

/1 Est:imates obtained by dividing fertilizer use shown here by area under crops by type of production unit shown inAppendix Table 4.1.

Source: Statistical Yearbook of the Socialist Republic of Romania, 1975.

-94-

Table 5.3: FERTILIZER PRODUCTION, CONSUMPTION AND EXPORTS('000 tons of nutrients)

Nitrogen (N) Phosphate (P205) Potash (K20)Year Produc- Consump- Apparent Produc- Consump- Apparent

tion tion _/ Exports tion tionT / Exports Consumption /

1965 163 145 18 127 110 17 121966 261 208 53 155 110 45, 191967 269 289 80 165 135 30 171968 418 330 88 182 141 41 141969 491 350 141 221 169 57 191970 604 367 237 244 203 41 241971 826 431 395 245 180 65 231972 871 421 450 313 173 140 451973 1,110 420 670 435 242 185 531974 480 299 351975 572 314 43

/1 Consumption date. fromi Ministry of Agriculture for years ending March and productiondata from Ministry of Chemical Industry for calendar year; therefore, the remainder(apparent exports) on a year-by-year basis is not fully consistent with actualcalendar year exports.

Source: IBRD Report No. 459-RO, Appraisal of Tecuci Fertilizer Project, Romania,May 21, 1974.

Table 5.4: PERCENTAGE DISTRIBUTION OF NITROGEN AMONG CROPS, 1975

Crop

Wheat 34Maize 28Sugar beets 5Potatoes 2Vegetables 2Other 29Total 100

Table 5.5: IRRIGATED AREA BY TYPE OF PRODUCTION UNIT AND LAND USE

Thousand Hectares-/ Percent of Area LItem 1961 1965 1970 1973 1974 1975 1961 1965 1970 1973 1974 1975

Type of Production Units

State Agricultural Units - 104.4 231.5 357.1 395.0 432.1 - 6.3 14.1 19.8 21.8 23.7AgricuLtural Production

Cooperatives - 115.9 431.6 753.3 832.9 977.4 - 1.7 6.8 11.6 12.7 14.8Other - 2.3 1.5 - - 14.7 - 0.2 0.1 - - 1.2

Total Arable Area - 222.6 664.6 1110.4 1227.9 1424.2 - 2.3 7.2 11.6 12.8 14.8

Land UMe

Crops:Wheal: 23.7 8.8 48.5 192.6 221.2 210.0 0.8 0.3 2.1 8.1 9.1 8.8Maize. - grain 45.7 57.5 156.5 219.5 251.2 428.0 1.3 1.7 5.1 7.4 8.5 13.0Sunflower 4.0 1.6 21.5 53.1 60.4 56.8 0.9 0.4 3.6 10.4 11.9 11.1Sugar beets 5.4 3.7 18.1 - 37.0 55.9 3.1 2.0 10.7 - 16.9 22.7 1Potatoes 2.4 2.5 10.8 - - - 0.8 0.8 3.8 - - -Vegetables 50.4 57.7 116.6 118.0 117.5 128.4 27.8 31.9 51.9 50.3 51,1 57.6Lucerne and Clover - 35.2 100.5 140.7 153.1 181.2 - - 16.6 21.4 24.5 24.9Other crops 53.0 45.9 165.3 334.3 329.3 292.8

Total Arable Area 184.6 212.9 637.8 1058.2 1169.7 1353.1 1.9 2.3 7.2 11.1 12.8 14.8

Pasture and Meadow - 5.0 11.6 19.4 19.4 25.8 - 0.1 0.3 0.4 0.4 0.6Vineyards - 3.6 9.3 16.7 18.9 19.2 - 1.2 2.7 5.0 5.7 5.9Orchard - 1.1 5.9 7.0 9.1 10.6 - 0.3 1.4 1.6 2.1 2.5

Subtotal - 9.7 26.8 43.1 47.4 55.6

Total Agricultural Area - 222.6 664.6 1110.4 1227.9 1424.2 - 1.5 4.5 7.5 8.2 9.5

/1 Computed by dividing data reported in this table by data reported in Appendix tables 2.1, 2.2 and 4.1./2 At the end of crop year.Source: Statistical Yearbook of the Socialist Republic of Romania, 1975,

-96-

Table 5.6: AVERAGE INCREASES IN CROP YIELDS

BY OPTIMUM FERTILIZER USE

Kg of Crop per Kg ofCrop Soil Type Active Substance

N P205 K20

Wheat Brown podzol 8 7 5Chernozem 11 7 0-3Alluvial 11 6 0-4

Maize Brown podzol 9 6 6Chernozem 12 6 0-5Alluvial 13 5 0-6

Sugarbeets Chernozem 85 75 0-30Alluvial 90 70 0-30

Potatoes Brown podzol 40 35 65Chernozem 50 35 0-50Alluvial 55 40 0-30

Sunflower Chernozem 6 4 0-3Alluvial 7 3.5 0-3

Alfalfa hay Chernozem - 12 -Alluvial - 13 -

Berseem hay Brown podzol - 12 6

Perennial grasses Brown podzol 17 10 7for hay Chernozem 18 10 0-4

Alluvial 19 9 0-4

Note: These yield response data are based on experimental trials with idealmoisture and other conditions and would be less under actual fieldconditions.

Source: The Academy of Agriculture and Forestry Sciences.

-97-

Table 6.1: THE ACADEMY OF AGRICULTURE AND FORESTRYSCIENCES: LIST OF SUBORDINATE RESEARCHINSTITUTES, CENTRAL STATIONS AND RESEARCHSTATIONS /1

I. INSTITUTES

1. The Research Institute for Cereals and Technical Plants, Fundulea.2. The Research Institute for Horticulture, Vidra.3. The Research Institute for Fruit Growing, Maracineni.4. The Research Institute for Viticulture and Wine-making, Vales

Calugareasca.5. The Research Institute for Cattle Breeding, Corbeanca.6. The Research Institute for Animal Nutrition, Balotesti.7. The Research Institute for Potato and Sugar Beet Crops, Brasov.8. The Research Institute for Veterinary and Biopreparations, "Pasteur".9. The Research Institute for Mechanization of Agriculture.10. The Research Institute for Agrarian Economy.11. The Research Institute for Pedology and Agro-chemistry.12. The Research Institute for Land Improvement.13. The Research Center for Plant Protection.

II. CENTRAL STATIONS

1. The Central Sheep Research Station, Palas.2. The Central Research Station for Sandy Soils Improvement, Bechet.3. The Central Research Station for Grassland Cultivation, Magurele.4. The Central Research Station for Soil Erosion Control, Perieni.5. The Central Research Station for Porcines Farming, Peris.6. The Central Research Station for Poultry FarmAing, Corbeanca.

III. RESEARCH STATIONS

1. Irrigation and Drainage Research Station, Banease Giurgiu. /22. Agricultural Research Station, Albota.3. Agricultural Research Station, Braila.4. Station for Agricultural Research, Caracal.5. Station for Agricultural Research, Caransebes.6. Agricultural Research Station, Lovrin.7. Research Station for Irrigated Cultures, Marculesti.

/1 Locations of the Institutes, Central Stations, and Research Stationsare shown by the numbers appearing on Map 11717.

/2 Transferred to National Council for Water Resources, January 1976.

-98-

CONT'D (RESEARCH STATIONS)

8. Agricultural Research Station, Orades.9. Agricultural Research Station, Podul Iloaiei.10. Station for Agricultural Research, Simnio.11. Station for Agricultural Research, Suceava.12. Agricultural Research Station, Teleorman.13. Agricultural Research Station, Turda.14. Research Station for Irrigated Cultures, Valul lui Traian.15. Research Station for Vegetable-growing, Aradul Nou.16. Research Station for Vegetable-growing, Bacau.17. Research Station for Vegetable-growing, Buzau.18. Research Station for Horticulture, Cluj.19. Research Station for Vegetable-growing, Isalnita.20. Research Station for Fruit-growing, Baia Mare.21. Research Station for Fruit-growing, Bistrita.22. Research Station for Fruit-growing, Falticeni.23. Research Station for Fruit-growing, Geoagiu.24. Research Station for Fruit-growing,? Tirgu Jiu.25. Research Station for Fruit-growing, Voinesti.26. Research Station for Viticulture, Blaj.27. Research Station for Viticulture, Dragasani.28. Research Station for Viticulture, Greaca.29. Research Station for Viticulture, Iasi.30. Research Station for Viticulture, Minis.31. Research Station for Viticulture, Murfatlar.32. Research Station for Viticulture, Odobesti.33. Research Station for Viticulture, Pietroasele.34. Research Station for Viticulture, Stefanesti.35. Research Station for Zootechny, Bontida.36. Research Station for Zootechny, Livada.37. Research Station for Zootechny, Secuieni.38. Research Station for Zootechny, Tirgu Mures.39. Research Station for Zootechny, Maramures.40. Research Station for Zootechny, Popauti.41. Research Station for Zootechny, Rusetu.

IV. COORDINATE INSTITUTES AND STATIONS

1. The Research and Designing Institute for Water Management.2. The Research Institute for Food Chemistry and Industry.3. The Research and Designing Institute Danube Delta, Tulcea.4. The Research Institute for Vegetable and Fruit Utilization.5. The Institute for Geodesy, Photogrammetry, Cartography, and

Territorial Organization.6. The Institute for Meteorology and Hydrology.L27. The Research Station for Sericulture.8. The Research Station for Tobacco Culture.9. The Research Station for Fish Breeding.

K V

1+ 17 17 L8 L]

ROMANIAAGRICULTURAL SECTOR SURVEY

MINISTRY OF AGRICULTURE AND FOOD INDUSTRYORGANIZATION AT JUDET LEVEL

DIRECTOR GENERALVICE CHAIRMAN OF THE INSPECTION E CONTROL GROUP FOREXECUTIVE COMMITTEE OF THE AGRICULTURE AND) FOOD INDUSTRYPOPULAR COUNCIL OF THE JUDET

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STATE AGRICULTURAL ENTERPRISE (FARM)ORGANIZATION CHART

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ROMANIAAGRICULTURAL SECTOR SURVEY

AGRICULTURAL PRODUCER COOPERATIVEORGANIZATION CHART

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ROMANIAAGRICULTURAL SECTOR SURVEY

FLOW OF AGRICULTURAL PRODUCTS TO MARKETS

ORGANIZATION CHART

P PRIVATE SECTOR

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'A'orld BE- 9989

I - I - IBR 117122, 24 r 26i 284 264 2I6 I SEPTEMBER 1975

SOCIALIST REPUBLIC OF ROMANIA

s. SI AGRICULTURAL SECTOR SURVEY-48' A/inj~~~~~~~~~~~~~~~~~~~~~~oor Ti*n 48

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_____________________________ IBHD 11720~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~IRD112(DziEs REP AND I> 2d' -2e SOCIALIST REPUBLIC OF ROMANIA 24d 2 28 AUGUST 1975

-r,lec. U.5 USSR.E-o\ c AGRICULTURE SECTOR SURVEY

w-\LAND AREA AND USE BY DISTRICTS, 1973J.GANORY) AALE LN-2, 2 HUNGARYj \ 5Q- ARABDLE LAND TOTAL PASTURE AND MEADOW 50DROMANIA Thousand hectarOs Zones: Thousond hectras:

nucosiuoiu 3_ St v _ 28 5-109 2 Plains 1 7 - 38.9

*CALr ; A dOULGARIA .( _ 109.3-156.1 Foothjils 39.0 - 766156.2- 191.3 I., Tnansylvanio m-untainsand tabelands 76.7 - 995

4REEct d g Z 191 4 - 2887 Zone boundonies 99.6 - 136.02888-383.1 ------ District judet boundaries 136.1-183.8

p -p ip pp pip o12p-, 383.2- 618.7 -.- International bound-ares 183.9- 294 6

U. 0 o 20 40 O0 dO 100 120 140 ic U.

-. MO^ETERS

" S~~E. 5j 20 upr ILE50

s0 lO -0i"0P

4E' 1 B -, A N I 'ANIVP .T TA ARE MARAMURE5 i p , r . -S A MARA58URE5 1 _n,

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(cr29ADYNl POLANID 2 7x' 26> g SOCIALIST REPUBLIC OF ROMANIA R0USD 1975

AGRICULTURE SECTOR SURVEY

vnAUSTR AXeu>vARy \8 . 50 WHEAT ND RYEAREA UNDER MAJOR CROPS BY DISTRICTS, 1973~~ 900.0646/ ' ~~~~~~~~~~~~~WHEAT AND RYE MIE51

ROMANIA f-.i Th-OS-d hUet,res: Zone5 ThOUsAd hectores:

0 YU 1 OSLAVIA 2 5 - 17 PlaiDs 2 6 -30 3

ITALY vo *t *~ f' CARlA 18 0 - 31.6 ; 6o6th0lls 30.4 - 49 0

61 "0 1~~~~~~~~~~~~~~~~3 1 7 46.9 / TVA-yi--DI 6JSA DD inCtaoeI-do 49 1 - 60 9

56 470 - 66.9 76i; boUaDmAa b n 61.0 - 737>1/GR-EE

670- 899 ------ Dsmt9 I4(JudetI bo-6does. 738- 1092

90.0- 189.2 -- IDSDOD9IA bo,ndanres 109.3 -190 2

U. s 66 40 60 90 1ao 120 16 10 U .

S _1_ ' *S

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NEDuREt~~~ / 5 'r&

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SATr J M A MJ E ARAU6RE 960 . 9 1 1 2- N6'

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